Bitcoin continues to feel the weight of market volatility and economic news. Recent events have placed the cryptocurrency at risk of falling to $88,000, with the looming potential of forming a bearish “head and shoulders” pattern that could push prices as low as $75,000. However, not all predictions are grim, some analysts see opportunities for a recovery.  

Mounting Market Pressure

On January 8, Bitcoin fell below the $96,000 mark, extending its decline amid macroeconomic challenges in the U.S. It dropped 1.7% in a single day, adding to its prior losses of over $5,000. The primary trigger was a sell-off in the spot market, which intensified following the release of unfavorable economic data, including the ISM PMI and JOLTs Job Openings.  

Read also: BTC Price Predictions for 2025

The analytics platform CryptoQuant reported a sharp increase in Binance's selling volumes. The hourly Net Taker Volume reached negative -$325 million, the highest value recorded in 2025. This trend highlights mounting selling pressure, making it increasingly difficult for Bitcoin to stage a price recovery.  

“Head and Shoulders” Pattern Signals Drop Risks to $75,000

Technical analysts closely watch a potential “head and shoulders” (H&S) pattern forming on Bitcoin’s chart. This classic bearish signal often indicates a trend reversal and could predict a significant price decline.  

Source: TradingView
Source: TradingView
  • The left shoulder formed after Bitcoin’s first failed attempt to break the $100,000 mark in November.
  • The head represents the drop to $92,000 in December after hitting an all-time high of over $108,000.
  • The right shoulder began to take shape with the recent dip to $97,000.

If BTC’s price breaks below the neckline at around $91,500, the bearish H&S pattern would be confirmed. This could pave the way for further declines to $75,000 based on the measured move method. However, analysts caution that trading solely based on such patterns is risky and should not rely exclusively on technical analysis.

Read also: How and Where to Buy BTC in 2025

Trader Skew believes the $95,000 level is critical for Bitcoin’s short-term outlook. As of writing, BTC is trading below this key support. The $92,000 – 88,000 range holds significant liquidity, making it a vital area to assess demand.

Some experts believe a drop to $88,000 is highly likely in the coming weeks. Trader Johnny predicts a dip ahead of President-elect Donald Trump’s inauguration.

However, not everyone is bearish. Analyst Josh Rager offers a more optimistic view, expecting a rebound by the end of the week.

Bullish Support Could Stabilize Bitcoin’s Price

Despite the current volatility, CryptoQuant CEO Ki Young Ju highlights signs of sustained demand for Bitcoin. The Apparent Demand indicator, which compares the number of mined BTC to those held for over a year, shows positive momentum. This suggests growing interest from long-term investors, which could help support prices in the future.  

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Source: Ki Young Ju

As selling pressure from exchanges continues to decrease rapidly, it limits the impact of price drops during sharp market moves. In this way, long-term demand for BTC remains a factor that could counterbalance short-term bearish trends.

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