Standard Chartered analyst warns: If BTC falls below 90,000 US dollars, it may face 10% pullback pressure.

Geoff Kendrick, Global Head of Digital Asset Research at Standard Chartered, warned that if the BTC price "completely falls below the 90,000 US dollar support level", the market may trigger a deeper pullback, with the currency price expected to bottom out in the $80,000 range, further impacting the overall cryptocurrency market.

In his research report on Tuesday, Geoff Kendrick pointed out that BTC is currently facing the 'convexity risks' from potential selling pressure from spot ETFs, which could lead to a rapid decline in cryptocurrency prices. He said:

We believe that if BTC completely falls below the $90,000 support level, it may further drop by 10% to a low of $80,000 in the short term, further dragging down the trend of other cryptocurrencies. However, once the pullback is over, this will be a good opportunity to re-enter and set up long positions.

According to CoinGecko market data, the trading price of BTC at the time of writing is $96,916, with a 2% increase in the past 24 hours.

Geoff Kendrick pointed out that since the US election, the BTC spot ETF fund inflows have only reached the 'break-even point,' and the market is facing the risk of intensified 'panic selling pressure,' which may exacerbate the selling wave caused by the overall economic situation. He emphasized:

$90,000 is a key support level for BTC. Once breached, it will definitely have an impact on the overall market and drag down all cryptocurrencies with a synchronized 10% pullback.

In addition, the recent global macroeconomic environment has also put pressure on the cryptocurrency market.

Geoff Kendrick mentioned that since Federal Reserve Chairman Powell reiterated his hawkish stance on December 18 last year, the market has been continuously impacted by selling pressure driven by the overall economic situation. BTC once touched the $90,000 mark on January 13, and the market fears that the selloff may fall into a self-fulfilling vicious cycle.

Geoff Kendrick further analyzed that since the US election, the buying pressure of BTC, including BTC spot ETFs and institutions such as MicroStrategy, has only reached breakeven. In the past few days, most traders have been cutting losses and selling. The pressure risk measured by market value is also increasing.

Although the market faces risks in the short term, Geoff Kendrick remains confident in the long-term prospects of BTC. He reiterated Standard Chartered Bank's long-term goal, believing that with the accelerated inflow of institutional funds, BTC is expected to surpass $200,000 by the end of 2025.

Standard Chartered analyst warns: If BTC falls below $90,000, it may face 10% pullback pressure. This article was first published in 'Blocklike'.