Bitcoin (BTC) Price Prediction for January 21

Although Bitcoin’s price recently surged toward $109,000, it couldn’t maintain its momentum and quickly fell to a low of $100,119. The trading volume for Bitcoin has declined by over 2.12% over the past 24 hours, reaching $103.3 billion.

Looking at a broader time frame, Bitcoin dropped below $100,000 on January 7 and has generally been on a downward trend since then. It hit a low of about $89,397 on January 13 but has begun to recover from this decline. Over the last 24 hours, its total market capitalization has risen by 2.3% to $2.07 trillion.

Bitcoin’s Funding Rate Remains Positive

Bitcoin’s price dropped because Donald Trump didn’t mention anything about cryptocurrencies during his inauguration speech. This led to a big sell-off, with over $100 million total positions being sold off within an hour after the speech ended. As a result, there was less interest in buying Bitcoin, which caused prices to fall further as short-term investors started selling their holdings.

This week, Bitcoin’s price increased by 8.2% and saw a gain of 7.5% over the past 30 days. Yesterday, Bitcoin’s price nearly reached $109,588 but didn’t attract enough buyers, leading to a decrease to $100,119.

Data from Coinglass shows that Bitcoin witnessed a total liquidation of over $227 million, out of which buyers liquidated around $144 million worth of positions. On the other hand, sellers liquidated around $83.5 million worth of positions.

However, the funding rate of Bitcoin remains positive despite the bearish threat. It is currently at 0.0109%, suggesting that buyers still have the advantage in bouncing back from the current level.

Bitcoin Price Prediction: Technical Analysis

The price of Bitcoin struggled to hold on to its momentum around $109,000, resulting in a steep decline toward $100K. Currently, it is experiencing some selling pressure around a key technical level but may soon break through it. Right now, Bitcoin is priced at $104,235, having risen by 1.15% in the last 24 hours.

The Bitcoin to USDT trading pair is still just under $104,000, which might pose a slight challenge. If it can stay above this level, it would be advantageous for buyers. The price could then rise to $108,256, and potentially even to $111,000.

On the other hand, if the price drops below a specific trend line (EMA20) on the 1-hour chart, sellers might push it back down to $100,000. However, a technical indicator called the RSI suggests there might be a potential rise, as it’s currently at a level that indicates buying interest.

Bitcoin Price Prediction: What to Expect Next?

Short-term: According to BlockchainReporter, BTC price might continue to struggle around $104K. However, the pressure might soon weaken, resulting in a consolidation below $108K.

Long-term: According to Coincodex’s current Bitcoin price prediction, the price of Bitcoin is expected to increase by 25.53% and reach $128,646 by February 20, 2025. Coincodex’s technical indicators suggest that the current market sentiment is bullish, and the Fear & Greed Index indicates a level of 76, representing ‘Extreme Greed’. Over the last 30 days, Bitcoin has experienced 16 green days out of 30 (53%) and has shown a price volatility of 3.44%. Based on this forecast, it is suggested that now is a good time to buy Bitcoin. 

Investment Risks for Bitcoin

Investing in Bitcoin can be risky due to market volatility. Investors should:

• Conduct technical and on-chain analysis.
• Assess their financial situation and risk tolerance.
• Consult with financial advisors if necessary.