Bitcoin analysts explain why BTC avoids a fall below $90K

Bitcoin (BTC) prices hit a January 9 low of $91,055, the lowest price since December 1. The next psychological support range remains below $90,000, and some market analysts continue to predict a decline below that level.

However, the following four factors suggest that BTC will avoid a fall below $90,000.

Crypto Fear and Greed Index Falls to Three-Month Low

After the BTC price fell 9% between January 7 and 10, the Crypto Fear and Greed Index fell to its lowest price since October 14.

According to Cointelegraph, the index's latest decline was its biggest fall in the past few years, and the sentiment shifted from “greedy” to “neutral.”

Technically, this is a positive development, historically, BTC prices have shown a reversal whenever the indicator drops to the neutral or fear zone.

Bitcoin indicators indicate that the “market peak” has not yet been entered

Bitcoin sparked bearish concerns after it failed to break above $100,000 on January 6.

A series of four liquidity events in two months indicate potential weakness and drought, and the markets are set for another period of correction. However, from a fundamental perspective, Bitcoin has not triggered any bull market highs.

CoinGlass data highlighted that the top crypto asset failed to test or surpass previous market highs. The Bull Market Peak Indicators consist of 30 scenarios that vary between charts and indices, but none of the benchmarks have produced bull market peaks prior to 2017 and 2021.

Mikibul, a crypto analyst, said these price spikes remain “opportunistic” ahead of the expected rally.

RELATED: Fed officials ‘neutral' on policy but expect clarity after Trump takes office.

Bitcoin Wells bought 34,000 BTC after the end of the year

Although the short-term volatility is shaking weak hands in the market, large holders have been actively collecting bitcoins since the end of December.

Cau Oliveira, head of research at Blocktrends, noted that institutional investors have accumulated $3.2 billion worth of more than 34,000 BTC since it fell below $108,000 on December 17.

“Big players have patiently stocked below US$95K and used consolidation to open TWAP positions.”

This shows that even though BTC recently sold below $100,000, institutional interest is high. Additionally, certified CryptoQuant analyst MAC.D has offered a window to accumulate rather than panic to sell, even if short-term investors are facing losses. And so he said.

“Selling coins at this time may be a very unwise decision.”

It seems “impossible” to sell $6.5 billion in BTC in six trading days

One of the key bearish catalysts affecting the price of Bitcoin over the past two days has been the rumor that the US government may sell more than $6.5 billion in BTC. Accordingly, crypto analyst Mia said it may be impossible for the government to execute sales within six business days.

With President-elect Donald Trump taking office on January 20, Mia highlighted the complexity of selling such large amounts of BTC during a recent key political event. The issue gets even more complicated because Trump has said he plans to establish a bitcoin reserve, meaning it could be a topic of discussion during his inauguration.

In short, the crypto enthusiast has argued that the upside is greater for Bitcoin as the market is already priced in undervalued speculation.

After clearing the lows below the previous range on the daily chart, Mikibul pointed out that Bitcoin liquidity pools are now chasing higher. Although a wick below $90,000 is possible for Bitcoin, the analyst predicted that a V-shaped recovery is on the cards.

Related: Bitcoin speculators fear ‘good time to stock up' and sell for $92K

This article is not intended for general information purposes and should not be construed as legal or investment advice. The views, ideas and opinions expressed herein are solely those of the author and do not necessarily represent the views and opinions of Cointelegraph.