Bitcoin price is currently stuck in a very narrow consolidation phase, oscillating just above and below the $118,800–$119,000 price area. Cryptocurrency has been holding up well at $119,462. In fact, it’s not all that far off, just 2.12% below its overall peak, even in this otherwise quarter of stagnation. Market analysts are all eyes on Bitcoin here, expecting a breakout any day now.
Just this week, 119,000 Bitcoin have gone into spot reserves, a massive sign of accumulation brewing. Bitcoin is absorbing sell pressure at the moment. It’s making that $116k to 120k range the hard support line it needs for its next bull climb.
Since hitting its all-time high last week, BTC has been working its way through a volatile trading market. Looking at past performance, after Bitcoin made the all-time-high (ATH) of that time, it had a 14-day ranging period before falling from its ATH. That was followed by a drop of $100,000, culminating in a three-week distribution period that cratered at just below $78,000.
The current price action suggests the opposite, a potential re-test or a break to the upside. After last week’s price prediction, this week could be an important tipping point for the emerging cryptocurrency.
The Fear and Greed Index, an overall gauge of market sentiment, has dipped modestly from 70 to 67. This small decrease is an encouraging sign that market sentiment is starting to turn from excessive greed and speculation to more prudent caution. The Fear and Greed Index is the latest to tip sentiment’s hand, putting some weight behind the bearish call.
Indeed, as a price prediction for BTC this week goes, patience is the name of the game. There is a very large cluster of long positions at $118,125, so that would make it a perfect target to run the stops on that level. Under the $116,000 level, two more layers of long liquidity are stacked, comprising nearly $80 million.
Given the historical structure of the January market, that January market structure is a good place to look for Bitcoin.
Overcoming short-term fluctuations, this BTC weekly structure, with the bullish S/R flip, is still in play. Hence, it offers this sense of stability. Sentiments on the market are sitting above 60 as the weekly structure remains firm. This creates a very positive sentiment as we head into this week’s Bitcoin price prediction.
