The Bitcoin price is recording the third consecutive bearish day after failing to hold the levels above the local highs at $102K. On the other hand, BTC saw nearly $568.8 million outflows as nearly 5,870 BTCs were sold during the last trading day. Currently, the levels are testing the support close to $93,400, showing no signs of a rebound as the buyers stay aloof. In the meantime, the pullback has brought the levels close to a pivotal zone, as a breakdown may drag the levels close to $85,000 shortly.
The token has been following a particular price action within each halving year. After the 2020 halving, the price of BTC plunged by over 35% in January, which further rebounded and surged high to mark a new ATH close to $70,000. Currently, the price has plunged less than 10%, which suggests the bulls are fairly in control. Too many big players seem to be spreading panic, maybe because they want to buy this dip or cause some instability before a change in power.
Previously in 2021, the drop was caused by some double-spend FUD and this time by some employment-based news. Moreover, the US DOJ getting clearance for selling over 69,370 BTC worth $6.5 billion seized from Silk Road does not appear good for the BTC price rally in the short term. Will this push the price to as low as $85,000 this month?
The historical BTC price action suggests a 10% pullback could be on the horizon as the indicators have turned bearish. The MACD lines are about to undergo a bearish crossover with a huge drop in the buying pressure and the RSI is constantly forming lower highs and lows. Therefore, the Bitcoin price appears to be primed to drop below $90,000 and reach levels close to $88,000 in the next few hours. Meanwhile, an extended pullback could drag the price to $85,000 or the average bands of the channel below $83,000.
Although the January trade appears to be bearish, that does not mean the start of a bear market. This can be considered a temporary pullback as the Bitcoin (BTC) price remains under a bullish influence and on the path towards a new ATH above $110K or $115K in the upcoming days.
