Bitcoin's price fell to $91,055 on January 9, its lowest since December 2024, raising concerns about a drop below $90,000. However, analysts believe various factors may prevent this decline. The Crypto Fear & Greed Index plunged from 78 to 50, indicating a shift in market sentiment that historically correlates with price recovery. Additionally, Bitcoin metrics suggest the market has not yet reached a peak, with no bullish indicators signaling an end to the current market cycle. Despite short-term volatility, large institutions accumulated over 34,000 BTC since December, demonstrating strong demand. Rumors about the US government potentially selling $6.5 billion in BTC have also contributed to downward pressure, but analysts deem such large-scale sales impractical in a short time frame. Overall, while a brief dip below $90,000 is possible, a V-shaped recovery is anticipated as liquidity pools target upward movements in the market.

Source 🔗