Bitcoin’s recent price volatility has left investors in a state of uncertainty as the cryptocurrency has seen a dramatic drop from a high of nearly $107,000 to around $94,550. This volatility raises significant questions about Bitcoin’s ability to sustain growth and whether it can regain its footing in the coming weeks.

Critical support levels at risk

CryptoQuant analyst Shayan had something vital to say about the current Bitcoin conditions. According to him, the price is trying to stabilize just above the $92,000 level, which he believes is key support.

He notes that Bitcoin is stabilizing near the $92,000 level, which he identifies as a key support zone. If Bitcoin falls below this level, it could trigger a wave of long liquidations and push prices towards the 100-day moving average of $81,000. In addition, this line provides a truly animated support, attracting an influx of buyers, and can also cushion prices during further declines.

Shayan highlights the role of market sentiment and technical indicators. Currently, Bitcoin is swinging at significant support levels, which are formed at the 90,000 level. dollars and Fibonacci retracement levels at 87,000. dollars and 82 thousand dollars. If the above levels are not maintained, there may be further selling pressure with corrections.

Bitcoin’s bullish outlook despite bearish fears

Amid this uncertainty, renowned cryptocurrency analyst Crypto Rover expressed an positive outlook for Bitcoin. He recently compared today’s price action to historical patterns, suggesting that positive trends can be expected for Bitcoin in January.

#Bitcoin history is exactly repeating itself.

January will turn green.

You will regret not buying more here. pic.twitter.com/DCssLNMGh6

— Crypto Rover (@rovercrc) January 8, 2025

In a tweet, he stated: “Bitcoin history is exactly repeating itself. January will turn green. You will regret not buying more here.” His analysis indicates that if Bitcoin manages to break through the critical resistance level of $100,000, it could potentially exceed $107,000.

Vast inflow of capital

Rover’s positive attitude is reinforced by the huge inflow of capital Bitcoin ETFswhich attracted over $900 million in revenue from institutions such as CzarnyRock and Faithfulness. The growing institutional interest also signals confidence in Bitcoin’s long-term prospects. However, he also warns that failure to close above the $100,000 level will lead to a pullback to $92,000 or even lower.

The broader cryptocurrency market is also feeling the strain. This decline goes hand in hand with the failure of Bitcoin and other cryptocurrencies such as Ether and Solana decreased by over 7%.

Even established crypto stocks such as MicroStrategy and Coinbase have plummeted. Funding rates falling in the derivatives market add another layer of bearish sentiment around Bitcoin. According to Shayan, falling financing rates reflect failing demand for derivatives, which has also played a key role in maintaining price trends.

Featured image from Pixabay, chart from TradingView