Over the weekend, Bitcoin 
$91,967 remained relatively stable; however, it is now testing the support level of 88,000 dollars once again. Analysts had previously warned about potential market disruptions triggered by Japan’s economic conditions, which could exert significant pressure on Bitcoin’s price in the upcoming days. As we approach the weekly close, Bitcoin is hovering around 88,700 dollars.
Cryptocurrencies on the Verge of Decline
Attempts to breach the 94,000-dollar resistance consistently failed, suggesting a probable breach of support if resistance tests continue to be unsuccessful. Japan’s potential interest rate hike on Friday, coupled with upcoming employment and inflation data from the US and the MSCI delisting decision for MSTR on January 15, are fueling investor fears.
Bitcoin has stagnated within a narrow range for a prolonged period, making a breakout inevitable in either direction. Market expectations lean towards a downward breakout, potentially increasing volatility. Crypto Tony mentioned his intention to wait and observe the breakout, suggesting positions be taken when Bitcoin permanently breaks either 90,600 dollars or 89,800 dollars.
Currently, it appears the support has been breached, and if selling pressure intensifies, Bitcoin might be tested at 81,000 dollars. Investor caution, exacerbated by impending market events and uncertainties, may reduce enthusiasm, complicating bulls’ efforts to push prices higher.
Bitcoin Predicted to Fall to 50,000 Dollars
An assessment shared on CryptoQuant highlights a bearish pattern underscored by a downward convergence of Simple Moving Averages (SMAs) and prices situated below significant trendlines.
“A glance at the Bitcoin chart reveals prices trading beneath short, medium, and long-term moving averages. With downward sloping SMA(7-14-30) and prices positioned below SMA(50-100), a clear bearish trend is apparent. Price reactions being sold at declining moving averages transform these into dynamic resistance levels. Attempts to rise lack volume, signifying weak buyer strength.”
During the consolidation phase, Bitcoin’s buying volume remains weak, with Ethereum 
$3,139 exhibiting a similar trajectory. Interest from buyers is limited, with CryptoQuant analysts declaring the rally, at least for Bitcoin, effectively over, and projecting a target of 50,000 dollars.
“Even though buying interest narrows, it hasn’t vanished entirely. Ethereum appears stronger compared to Bitcoin, lacking sufficient momentum to confirm a trend reversal. Compared to Binance charts, Ethereum outshines Bitcoin clearly. Yet, the market hasn’t entered a risky stage. Long-term moving averages continue to trend downward, reactions linger below resistance levels, and volumes remain inadequate to back a sustainable rise. Currently, Bitcoin’s rally seems over, anticipating a deeper bear market phase potentially reaching the 50,000-dollar level before the next significant rally.”
