- Bitcoin tested the $92,000 level yesterday after falling from a weekly high of $102,000 as sell pressures mounted.
- Macroeconomic factors cause doubts about the market strength as sticky inflation becomes a concern.
- Spot crypto ETFs logged large outflows on Wednesday following the release of the Fed meeting notes.
Bitcoin’s price has fallen from a high of $102,667 reached on Tuesday, Jan. 7 to $94,890.00 as of publishing, but remains within the last H4 demand zone.
While the demand zone between $92,000 and $97,000 may be the last support level on the H4 timeframe, a broader market view shows that BTC is in a premium zone on the daily time frame, so a push below $92,000 still puts the price in bullish territory overall.
The best technical buy levels would be either at the last break of structure on the daily time frame or at the 50% Fibonacci level from the lowest point to the break.
There are two fair value gaps from which the price could react. While they are not major zones, they could support a continuation back to the external high at $108,000 or a brief relief rally before continued sell to the first probable support zone.
This is all predicated on Bitcoin breaking below the $91,000 level.
Meanwhile, spot crypto ETFs recorded outflows on Wednesday, Jan. 9 after the release of the Fed meeting minutes which shows that the Fed is cautious about inflation and the effects of Trump’s incoming policies.
BTC ETFs bled $568.8Mn on Wednesday while ETH ETFs lost $159.4Mn with the biggest outflows from Fidelity ($258.7Mn for BTC and $147.7Mn for ETH).