Bitcoin Dumps To $97,000, Ethereum, XRP, Dogecoin Follow It Down: Analyst Says This Level Has To Hold To Avoid 'Dip To $92,000'

Cryptocurrency markets are sliding on Tuesday as producer price pressures weigh on the market.

Cryptocurrency	Price	Gains +/-
Bitcoin BTC/USD	$97,073.3	-4.7%
Ethereum ETH/USD	$3,431.99	-6.9%
Solana SOL/USD	$205.16	-6.4%
XRP XRP/USD	$2.30	-5.5%
Dogecoin DOGE/USD	$0.3562	-8.7%
Shiba Inu SHIB/USD	$0.00002217	-8.4%

Notable Statistics:

• IntoTheBlock data shows large transaction volume increasing by 68.6% and daily active addresses falling by 0.01%. Transactions greater than $100,000 are up from 7,116 11,574 to in a single day. Exchanges netflows are up by 231.8%.
• Coinglass data reports 136,773 traders were liquidated in the past 24 hours for $409.57 million. Long liquidations at $344.6 million were the highest since Dec. 20.

Notable Developments:

• Bitcoin Spot ETF Inflows Hit $987 Million But Watch This Mid-January Fiscal Deadline
• CFTC Chairman Rostin Behnam To Step Down In February
• Ripple Announces Chainlink Integration To Boost RLUSD Stablecoin
• CPAI Launches Token For AI-Powered Crypto Tax Reconciliation Platform
• Riot’s Crypto Mining Success Spurs Investor Interest With Defiance’s New ETF

Top Losers:

Cryptocurrency	Price	Gains +/-
SPX6900 SPX/USD	$1.35	-15%
Pudgy Penguins PENGU/USD	$0.03816	-13.7%
Core CORE/USD	$1.12	-13.2%

Trader Notes: As Bitcoin drops below the $100,000 mark, crypto trader Michael van de Poppe notes that the ongoing BTC chop could signal a consolidation phase.

He concluded, “Correction over? Expect a market-wide bounce, with the strongest altcoins bouncing back the most.”

Crypto chart analyst Ali Martinez pointed out that the TD Sequential indicator is flashing a buy signal on the BTC hourly chart.

If the $97,000 support holds, Bitcoin is likely to rebound.

However, if it falls below this level, it could drop further to $92,000.

The TD Sequential indicator flashes a buy signal on the #Bitcoin $BTC hourly chart, right above the setup trend line and the 200-hour MA, near $97,000. If this support holds, #BTC may rebound.

A break below $97,000, however, could open the door for a dip to $92,000. pic.twitter.com/jevgNgKyEf

— Ali (@ali_charts) January 7, 2025

More Crypto Online suggests that traders should focus on potential support breaks, treating levels as key decision points rather than making predictions.

A dip to $85,000 may be expected if support is lost, but aggressive trades should be avoided until a reversal signal confirms support.

Castillo Trading advises that with Inauguration Day just two weeks away, patience is crucial.

He recommends holding off on trades until a potential retest of the $93,527 level.

Although higher levels are the target, the recent selloff suggests a possible chop and gradual fade following the $100,000 rejection.

Read Next: 

• Bitcoin Dumps Below $99,000: What Does Technical Analysis Say?

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