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Bitcoin Price Analysis: Economic Headwinds Push Price Lower

Bitcoin Price Analysis: Economic Headwinds Push Price Lower

CoinjournalCoinjournal2025/01/10 16:33
By:Coinjournal
  • 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.

Bitcoin Price Analysis: Economic Headwinds Push Price Lower image 0

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.

Bitcoin Price Analysis: Economic Headwinds Push Price Lower image 1

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.

Bitcoin Price Analysis: Economic Headwinds Push Price Lower image 2

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.

Bitcoin Price Analysis: Economic Headwinds Push Price Lower image 3

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).

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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