- Bitcoin trades at $94,323, forming patterns that hint at a breakout toward $155,000 or a possible fall to $72,000.
- CME gap at $94,715 signals potential price movement, with Bitcoin historically closing 99% of such gaps in days.
- ETF activity stirs mixed sentiment, but traders anticipate a breakout to define Bitcoin’s direction in the coming weeks.
Bitcoin is now at a crossroads, with experts expecting a significant move after the digital currency has traded in a narrow range for several weeks. Rover pointed out that the crypto asset has been ranging for more than 60 days. He said that it is creating patterns that usually occur before a major price move. The market is on the lookout for a clear break in either direction.
Bitcoin bounced back from the recent fall and as of press time trading at $94,323. This historic streak came after the U.S. government was reported to have sold $6.5 billion worth of Bitcoin which led to a short lived drop. It has raised hope among traders who believe that it is an indication that the market is on the verge of a comeback.
Bitcoin’s CME Gap Focus
Over the weekend, the price of Bitcoin was relatively stable, although the trading range was still relatively narrow. The attention is on the newly emerging gap on the CME at $94,715. In the past, Bitcoin has been able to close 99% of such gaps within a few trading sessions, and many are likely to anticipate the price to move towards this region in the early part of the week.
Source: CryptoRover
From the charts, it is clear that Bitcoin price has been trading in the symmetrical triangle formation which are continuation patterns. According to Rover, the price may rise to as high as $155,000 if Bitcoin goes beyond the upper resistance level. But if the prices fail to uphold key support levels, there is a high possibility for a sharp decline to $86,000 and $72,000.
Source: CryptoRover
The activity linked to ETFs has also affected the sentiment of the market. BlackRock has apparently offloaded $183.6 million worth of Bitcoin in two days, prompting worries over institutional selling. Nevertheless, the general outlook for Bitcoin ETFs has not been entirely negative. Many investors still consider them to be a long-term driver of growth and adoption.
January Trends for Cryptos
Other cryptocurrencies are also rising due to technical analysis pointing to the fact that bitcoin experiences range bound movement before altcoins surge. Ethereum and other major crypto currencies are still watched closely as many are anticipating huge rallies towards the end of the month of January. As has been the trend, January has usually been a good month for altcoins, especially in years when there is a halving.
Source: CryptoRover
As the risks persist, the current trend is seen by most as a normal evolutionary cycle of Bitcoin. Nearly everyone believes that an upward or downward breakout will set the tone of the cryptocurrency for the next few weeks. As Bitcoin stagnates, the market prepares for a shift that will greatly determine the future of the cryptocurrency.
