Bitcoin’s (BTC) price has faced a period of stagnation in recent weeks, with the cryptocurrency failing to sustain its momentum after earlier optimism in December.
After reaching an all-time high of $108,135 earlier in the month, Bitcoin has since dropped to $94,399.87 at press time.
Price Performance and Recent Movements
Bitcoin’s price currently reflects a 13.2% drop over the past two weeks and is trading 14.2% below its all-time high. The digital asset showed a slight increase of 0.72% in the last 24 hours and 0.56% over the past seven days, indicating limited upward momentum.
Over the past week, Bitcoin’s price has fluctuated between $91,816.86 and $99,344.95, while the 24-hour range is narrower, at $91,375.39 to $94,838.16.
Despite a circulating supply of 20 million BTC and a market cap of over $1.86 trillion, Bitcoin’s trading activity appears subdued.
Key Technical Indicators Signal Caution
Technical analysis has identified crucial price levels for Bitcoin. The TD Sequential indicator on the 12-hour chart has signaled a potential rebound if Bitcoin sustains a close above $94,700, suggesting a rally toward $97,500.
However, if the price breaks below $92,500, analysts warn that a continued bearish trend could follow.
Source: X
Fibonacci retracement levels mark $94,700 as a critical resistance level. A close above this level could confirm further upward movement, while $92,500 is a key support level that, if breached, would invalidate the bullish outlook.
The monthly Relative Strength Index (RSI) stands at 75, below the historical threshold of 92, which has marked previous bull market peaks.
The RSI suggests that Bitcoin has not yet reached the overbought zone associated with major price reversals.
Source: X Stablecoin Reserves and Market Activity
Bitcoin’s January price performance may benefit from nearly $45 billion in stablecoins awaiting deployment. Data from CryptoQuant shows that stablecoin reserves on Binance are nearing their all-time high of $45.8 billion, last seen on December 11.
On that date, Bitcoin recorded a 4.7% intra-day gain, surpassing $101,000.
Source: CryptoQuant
Despite this, recent weeks have shown a decline in trading activity, particularly on Binance. Both spot and futures trading volumes for BTC/USDT pairs have dropped significantly.
This decline reflects reduced market engagement, with retail interest remaining low as Bitcoin struggles to reclaim its earlier momentum.
Market Outlook Amid Reduced Interest
The recent drop in Bitcoin trading volume and price stagnation have raised questions about its near-term trajectory. With stablecoin reserves suggesting potential liquidity, traders are monitoring key support and resistance levels closely.
Whether Bitcoin regains momentum or faces further declines may depend on its ability to maintain critical price thresholds and attract renewed market interest.
FAQs:
What is Bitcoin’s current price?
Bitcoin is trading at $94,399.87, reflecting a 13.2% drop over the past two weeks.
What are the key support and resistance levels?
Support is $92,500, and resistance is $94,700 for a potential rally to $97,500.
What is Bitcoin’s RSI level?
The monthly RSI is at 75, below the historical peak threshold of 92.
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