Bitcoin price consolidating around the $94,500 level and on-chain metrics signals concerning signs for the crypto market. Bitcoin network activity has hit a two-month low showing the dwindling investor interest in the world’s largest crypto asset class. Market analysts believe that BTC price risks crashing all the way to $70K if it loses the crucial support of $92,000. Macro factors have also contributed majorly to the selling pressure with US jobs data showing stronger-than-expected numbers recently. This has further delayed the possibility of the first Fed rate cuts to June 2025, from the previously expected March cuts. Moving ahead this week, the US CPI inflation and PPI data will be key indicators to watch. Bitcoin Network Activity Hits Lowest Since November The Bitcoin network has experienced a significant drop in activity marking the lowest level since November 2024. Also, the total number of active BTC addresses has dropped to just 667,100. Crypto analyst Ali Martinez stated that the decline shows a slowdown in network engagement leaving investors concerned regarding potential implications for BTC price. Source: Ali Martinez There’s a growing chorus that BTC could plummet further below $90,000 levels with investors expecting another 10-20% correction from here. Furthermore, with on-chain Bitcoin indicators showing weakness, there’s a greater possibility of a correction before we resume the mega bull run in 2025. The 7-day moving average of the Short-Term Holders’ SOPR (Spent Output Profit Ratio) has fallen below 1, signaling that, on average, short-term holders are selling their assets at a loss. Source: Glassnode On the upside, analyst Martinez highlighted a critical resistance zone for BTC anywhere between $97,000 and $99,500. In this range, approximately 1.26 million accumulated 1.22 million BTC previously. Martinez notes that breaking above this level could prove pivotal for BTC price trajectory. Source: Ali Charts How Low Can BTC Price Go From Here? Explaining the popular Bitcoin bull market support band, popular crypto analyst Benjamin Cowen stated that the BTC price corrects up to 30% in January of the post-halving years, citing historical trends. He noted that the bull market support band has continued to rise as the BTC price consolidates around $94,000 levels. The 20-week estimate is currently just above $81,000 while the 21-week EMA is just above $84,000. So far in January, Bitcoin has gone as low as just above $90,000 Drawing parallels from January 2024, crypto analyst Benjamin Cowen stated that the BTC price could see a few months of consolidation before bouncing back strongly. In the meantime, there’s every possibility of major drops before BTC bounces back into the upper range. #Bitcoin Bull Market Support Band pic.twitter.com/dhJ8diJ8n0 — Benjamin Cowen (@intocryptoverse) January 13, 2025 Another popular analyst Crypto Patel noted that Bitcoin needs to stay above the crucial support level of $92,000. If it breaks under this support, we could see a correction to $70K-$75K before further targeting a rally to $150K-$160K on the upside. Crypto influencer Jeremie Davinci still believes that BTC could still soar to $350,000 in the bull run. Source: Crypto Patel As of press time, Bitcoin price is trading 0.34% down at $94,178 with a market cap of $1.864 trillion. As per the Coinglass data , the open interest is just above $60 billion while the 24-hour liquidation stands at just under $50 million. The post Bitcoin Network Activity Plummets, BTC Price Risks Crashing To $70K: Analysts appeared first on CoinGape .
