The post Bitcoin’s January Trap is Unfolding-Here’s What to Expect from BTC Price Rally This Month appeared first on Coinpedia Fintech News
The Bitcoin price is recording the third consecutive bearish day after failing to hold the levels above the local highs at $102K. On the other hand, BTC saw nearly $568.8 million outflows as nearly 5,870 BTCs were sold during the last trading day. Currently, the levels are testing the support close to $93,400, showing no signs of a rebound as the buyers stay aloof. In the meantime, the pullback has brought the levels close to a pivotal zone, as a breakdown may drag the levels close to $85,000 shortly.
The token has been following a particular price action within each halving year. After the 2020 halving, the price of BTC plunged by over 35% in January, which further rebounded and surged high to mark a new ATH close to $70,000. Currently, the price has plunged less than 10%, which suggests the bulls are fairly in control. Too many big players seem to be spreading panic, maybe because they want to buy this dip or cause some instability before a change in power.
Previously in 2021, the drop was caused by some double-spend FUD and this time by some employment-based news. Moreover, the US DOJ getting clearance for selling over 69,370 BTC worth $6.5 billion seized from Silk Road does not appear good for the BTC price rally in the short term. Will this push the price to as low as $85,000 this month?
The historical BTC price action suggests a 10% pullback could be on the horizon as the indicators have turned bearish. The MACD lines are about to undergo a bearish crossover with a huge drop in the buying pressure and the RSI is constantly forming lower highs and lows. Therefore, the Bitcoin price appears to be primed to drop below $90,000 and reach levels close to $88,000 in the next few hours. Meanwhile, an extended pullback could drag the price to $85,000 or the average bands of the channel below $83,000.
Although the January trade appears to be bearish, that does not mean the start of a bear market. This can be considered a temporary pullback as the Bitcoin (BTC) price remains under a bullish influence and on the path towards a new ATH above $110K or $115K in the upcoming days.