Bitcoin (BTC) dropped 6% over the past day, falling below K as a spot sell-off driven by macroeconomic concerns pushed BTC price action to a “pivotal” level, contributing to an 8.4% slump in the global crypto market.
According to analyst Skew, following Bitcoin’s recent dip, a further drop to K—just 0 away at press time—could potentially lead BTC to retest levels as low as K.
The Apparent Demand indicator measures Bitcoin’s demand by comparing the number of newly mined coins with the number of coins that have been held for over a year. A high reading on it means investors are confident about the asset’s future potential.
Skew’s scenario could play out as there has been an uptick in selling pressure on Binance, one of the largest cryptocurrency exchanges by trading volume. According to CryptoQuant analysts, Binance’s hourly Net Taker Volume turned sharply negative on Jan. 8, hitting a yearly low of -5 million during the release of the ISM PMI and JOLTs Job Openings data, which signaled unfavourable conditions for risk assets like Bitcoin.
Among other experts, fellow trader Johnny also anticipated a potential dip into that zone in the coming weeks.
Bitcoin could potentially tumble down to ,000 if it fails to hold the key support level at k, according to an analyst.
The bearish predictions for BTC emerged as institutional demand appeared to weaken, evidenced by a significant drop in inflows on Jan. 7, which stood at .9 million—nearly 94% lower than the almost billion recorded just a day earlier.
Meanwhile, according to pseudonymous analyst Rekt Capital, Bitcoin has entered the ,000–1,165 range after failing to hold the critical daily support level at 1,165. This could see BTC oscillate within this range in the short term, with ,000 acting as the next key support level.
Despite the bearish speculations, on-chain data tells a different story.
“Right around 1D lows (K – K), bid liquidity has been buffered with a significant increase in demand,” the analyst noted, adding that spot flow will also play a vital part for the rest of this week.
A related chart showed liquidity blocks positioned lower in the Binance order book, signaling strong buyer interest near the ,000 mark.
Another bullish case for Bitcoin was presented by CryptoQuant CEO Ki Young Ju, who noted that the Apparent Demand for Bitcoin “remains very high.”
