Bitcoin experienced a significant selloff on January 8, forming a bearish engulfing candle on its daily chart, marking its second steepest decline in 19 weeks. This downturn followed a brief retest of the $100,000 mark, raising concerns about a potential price correction below $90,000. The selloff unfolded amid heightened market uncertainty as traders and analysts speculated about further downward movement.
The sudden drop from $102,760 to $92,500 coincided with the release of U.S. Bureau of Labor Statistics data showing 8.1 million new job openings in November, surpassing expectations of 7.74 million. This unexpected increase suggests a stronger U.S. economy, which in turn weakened both equity and crypto markets.
Despite the dip, crypto analyst Miles Deutcher noted that the stablecoin supply has entered “price discovery” mode, indicating more liquidity is entering the crypto ecosystem. This could lead to increased capital inflows over the coming months. Market analyst Jamie Coutts echoed this sentiment, suggesting that the rising dollar strength indicates a possible future BTC price increase, although current indicators suggest a lingering bearish trend.
The current bullish phase has been marked by notable liquidity compared to past rallies. Data analyst Roman Zinovyev highlighted that USD volumes on Binance’s spot markets have risen progressively since 2020, with the American market share reaching an unprecedented 42% in the 2024-2025 session.
However, Bitcoin’s recent 5.15% decline wiped out four days of positive price action, creating uncertainty about the likelihood of an immediate recovery. Historically, Bitcoin has seen a 5% or greater pullback 15 times since January 2024, but only rebounded immediately on three occasions.
Crypto trader Krillin suggested Bitcoin might hover between $92,000 and $90,000 in January before a potential market uptick the following month. Meanwhile, crypto investor Jelle anticipates a retest of lows around $90,000 before any new highs are established. If Bitcoin fails to stay above $90,000, a significant crash could occur, potentially validating an inverse head-and-shoulders pattern, which may trigger another 20% decline to around $71,500.
This analysis does not constitute investment advice. Investors should conduct their own research before making any financial decisions.
