Although Bitcoin’s price recently climbed toward $106,026, it failed to sustain this level and soon dropped to immediate support levels. Over the past 24 hours, Bitcoin’s trading volume has decreased by more than 32%, totalling $37.7 billion.
In a broader perspective, Bitcoin fell below $100,000 on January 7 and showed a downward trend. It reached a low of approximately $89,397 on January 13 but has started to recover. However, the BTC price is threatening to drop further. Over the last 24 hours, its total market capitalization decreased by 0.65%, settling at $2.07 trillion.
Bitcoin’s Funding Rate Touches 0.0076%
Bitcoin’s price is facing a consolidation around $106K level despite Trump signing multiple executive orders favouring the crypto market. Additionally, Bitcoin has been struggling to maintain momentum as it faces repeated rejections at the $107,000 price level, primarily due to increased selling pressure from short-term holders who are looking to capitalize on any significant price gains.
Over the course of the last week, Bitcoin has seen a decline of 1.07% in its price, and over the past 30 days, it has achieved a total gain of 12%. Despite these positive movements, when Bitcoin’s price reached $106,026, it failed to attract enough buyers to sustain its climb, resulting in a pullback to support lines.
The trading sentiment during this period is illustrated by data from Coinglass, which indicates that there was a total liquidation of over $39.8 million in the Bitcoin market. This consisted of $18.7 million worth of positions liquidated by buyers and about $21.03 million by sellers, reflecting the volatility and the nearly balanced domination of buying and selling pressure.
However, despite the bearish undertones suggested by these liquidations, the funding rate for Bitcoin remains at a positive 0.0076%. This suggests that buyers are still somewhat bullish and maintain a slight advantage, potentially positioning them to drive a recovery from the current price levels.
Bitcoin Price Prediction: Technical Analysis
The price of Bitcoin struggled to hold on to its momentum around $106,000, resulting in a steep decline toward $104K-$105K. Currently, it is experiencing some selling pressure around a key technical level but may soon break through it. Right now, Bitcoin is priced at $104,760, having dropped by 0.54% in the last 24 hours.
The Bitcoin to USDT trading pair is struggling around $105,000-$106,000, which might pose a slight challenge. If it can stay above this level, it would be advantageous for buyers. The price could then attempt to move above $108,256, and potentially even to $111,000.
On the other hand, if the price continues to trade below the EMA20 trend line on the 1-hour chart, sellers might push it back down to $103,000. However, the RSI around level 54 suggests there might be a potential rise.
Bitcoin Price Prediction: What to Expect Next?
Short-term: According to BlockchainReporter, BTC price might continue to struggle around $105K-$106K. On the other hand, $103K is the lower range.
Long-term: According to Coincodex’s current Bitcoin price prediction, the price of Bitcoin is expected to rise by 26.85% and reach $132,823 by March 2, 2025. Coincodex’s technical indicators suggest that the market sentiment is currently bullish, while the Fear & Greed Index indicates a level of 76, showing Extreme Greed. Over the past 30 days, Bitcoin has experienced 18 green days, which represents 60% of the time, with a price volatility of 4.16%. Based on this forecast, Coincodex suggests 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.
