The cryptocurrency market is witnessing a strong bearish action, leading to a significant correction in token valuations including Bitcoin. Bitcoin prices now fluctuate around the important $90,000 support zone, raising investor questions about possible recovery.
BTC Price Retests Its Important Support Zone
The Bitcoin price has recorded a strong bearish action this week, losing around 10% of its valuation. Currently, Bitcoin is trading at $93,504.70. A strong support zone has formed around the $90,000 mark, indicating a potential bullish reversal. However, considering the current market sentiments, the BTC token remains highly volatile.
Bitcoin ETF Update
For the first time this year, no BTC ETFs have recorded a positive flow in 24 hours. Notably, Fidelity’s 'FBTC' recorded the highest loss at $258.7 million, followed by Ark’s 'ARKB' with a loss of $148.3 million. Other losers include BlackRock’s 'IBIT' at $124 million and Bitwise’s 'BITB' at $11.3 million. In total, the flow for January 08 concluded at -$568.8 million.
BTC Technical Sentiments
The Simple Moving Average (SMA) has experienced a bearish convergence in the daily timeframe, highlighting an increase in the selling-over-buying pressure in the cryptocurrency market. The Relative Strength Index (RSI) has dropped below its neutral point on the 1D Bitcoin price chart, and the average trendline shows a negative crossover, hinting at a bearish outlook.
If a trend reversal occurs, BTC price could retest its resistance level of $98,000. On the other hand, if bears dominate, it may test its crucial support zone of $90,000 and plummet further to $86,000 this month.
