According to Michaël van de Poppe, Bitcoin's recent attempt to sustain a price above $98,000 was unsuccessful, with the digital currency falling back into a lower trading range. As of January 8, 2025, the price has retracted, indicating a potential continuation of the downtrend that could lead to the price seeking liquidity beneath the $92,000 level. This movement is part of a broader pattern observed over the past few weeks, where Bitcoin has struggled to maintain bullish momentum in the face of significant selling pressure around key psychological levels.

The trading implications of this downward movement are significant. As the price dipped below the $98,000 mark, trading volumes have shown a marked increase, suggesting heightened selling activity. Source data indicates that the trading volume on major exchanges surged by approximately 15% as the price fell below this critical level. This increased volume is indicative of traders potentially unwinding long positions or entering new short positions in anticipation of further declines. Additionally, the source highlights that the order book depth has also shifted, with more sell orders accumulating in the $96,000 to $97,000 range, suggesting trader sentiment is leaning bearish at this point.

From a technical analysis perspective, several indicators are signaling potential further downside for Bitcoin. The Relative Strength Index (RSI), as reported by the source, has dipped below 40, indicating that the asset is approaching oversold conditions, but not yet providing a definitive reversal signal. Furthermore, the Moving Average Convergence Divergence (MACD) indicator has crossed into bearish territory, with the MACD line dropping below the signal line as of the latest update. This crossover suggests a continuation of bearish momentum. Additionally, source data shows that the Average Directional Index (ADX) has risen above 25, confirming the strength of the current downward trend.