Bitcoin Price Analysis: Steep Correction as Market Tests Sub-$90K Support Levels

Currently trading below $95,000, Bitcoin (BTC) has dropped significantly from its recent all-time high of $108,230 as the cryptocurrency market absorbs the Federal Reserve’s hawkish posture on interest rates and lowered liquidity projections for 2025.

Bitcoin Price Analysis: Steep Correction as Market Tests Sub-$90K Support Levels

Bitcoin Price Analysis

Entering corrective territory, the flagship bitcoin has dropped over 14% from its peak and helped to cause a wider $500 billion crypto market selloff. Technical analysts highlight many alarming signals, including important support levels under testing and bearish divergence on the Relative Strength Index (RSI).

Alex Kuptsikevich, FxPro chief market analyst, says “Markets continue to digest the Fed’s tougher tone, reinforced by the accumulated urge to lock in profits after a strong year.” With some experts anticipating possible declines to the $70,000 range, the limited holiday liquidity could perhaps magnify price fluctuations.

BTC/USD Technical Analysis: Key Support Levels to Watch

BTC/USD

 

Several technical indications point to more negative possibility:

  • The main Fibonacci retracing level at $89,000 is a vital support zone; minor support levels are $76,930 and $67,100.
  • These levels match on-chain data revealing notable buyer accumulation zones, especially at $77,792, which is the 1-month to 3-month short-term holding realized price.

BTC and Institutional Investors

Instititutional interest is very visible even with the market downturn. Purchasing 619.70 BTC for around $61 million, Tokyo-listed Metaplanet has significantly expanded its holdings by 54%. Still, other institutional companies such as MicroStrategy have had their stock values drop by 9% in line with the general market correction.

Global Liquidity Challenges

A worrisome relationship between the price of Bitcoin and world money supply (M2) points to possible more negative outcome. Its lowest level since August 2024, the global M2 has dropped $4.1 trillion to $104.4 trillion. Historical trends suggest this could signal a notable change in BTC prices in the next weeks.

Bitcoin Price Forecast

Although Bitcoin is still up 120% year-to- date, experts are wary about short-term price movement. Technical and on-chain indicators point to a possible test of the $89,000 level; some experts are not excluding more significant corrections to the $70,000 zone. Strong support exists, though, at $77,492 and $60,504, characterized by notable buyer accumulation.

The market view is still especially vulnerable to macroeconomic events; future price action depends much on the course of Fed interest rates. “Monetary easing has almost always favoured the price of bitcoin, and the opposite has a negative impact on the price,” Yuya Hasegawa of bitbank says.

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ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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