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- Bitcoin enters the 6th consolidation range, signaling potential breakout or deeper correction.
- Institutional ETF outflows rise while whales accumulate over $2.1 billion worth of Bitcoin.
- Key support at $92,118; traders watch for breakout above $96,397 resistance.
Bitcoin—BTC, has now entered the 6th consolidation range of this market cycle, adding to the intrigue. Previous ranges have followed a predictable pattern—sideways price action, misleading fakeouts, and eventual breakouts. Many traders believe history may repeat itself, with a massive move likely on the horizon. Yet, the growing fear in the market, alongside price declines, raises questions about what lies ahead. Will Bitcoin recover, or will the downward trend persist? Let’s break down the factors shaping this range.
#Bitcoin – Don’t miss the bottom again!
— Mags (@thescalpingpro) January 9, 2025
BTC has entered the 6th range of this cycle. Since the $15.5k bottom, every leg up has been followed by a consolidation range.
Each range = sideways price action, fakeouts (both sides), then a breakout.
We’re now in the 6th range, and… pic.twitter.com/lbYs6w4oa7
Falling Prices and Key Support Levels
Over the last three days, the total crypto market cap has plummeted by 9%, sparking concern. Bitcoin has dropped below $94,000, weighed down by heavy selling pressure. The 4-hour chart shows the 50 and 100 EMA lines crossing downward, indicating a bearish trend. Despite the downturn, the RSI signals oversold conditions, hinting at a potential rebound near $92,118.
Traders are preparing for two likely scenarios. One possibility involves further losses, with prices sliding to $92,000. Alternatively, a V-shaped recovery could drive the price toward the $96,397 resistance level. The next few days will determine which path Bitcoin takes.
Institutional Outflows and Whale Accumulation
Institutional investors have pulled significant funds from Bitcoin ETFs. Recent outflows totaled $582.90 million, marking the second-largest single-day withdrawal in history. Fidelity led the outflows, shedding $258.69 million, while BlackRock sold $124.05 million worth of Bitcoin. This retreat by major players has weakened market confidence.
On the other hand, Bitcoin whales remain undeterred. Over 22,000 Bitcoins, valued at $2.1 billion, have been withdrawn from exchanges recently. These large holders are reducing available supply, signaling long-term faith in Bitcoin’s value. This behavior could act as a bullish catalyst once the market stabilizes.
As Bitcoin navigates this 6th range, the price action resembles a tightly coiled spring. A decisive move is coming, whether it’s a pullback to $92,000 or a breakout past $96,000. The coming days could bring the next defining moment in Bitcoin’s journey.