Market Direction

BTC range-bound between $99K-$107K

Published: Jan 31, 2025

Bitcoin remains in a tight range between $98,900 and $106,900, with a potential pullback in sight. Meanwhile, Alts are stabilizing, and some sectors are showing signs of strength. Let’s break down key levels and market trends.

Disclaimer: This is not financial or investment advice. You are responsible for any capital-related decisions you make, and only you are accountable for the results.

BTC:

We're seeing a lower BTC's Open Interest trend, which suggests there's less demand amongst traders to leverage it. This is positive but also expected when the market is in more choppy conditions.
Funding Rates range from 0.00% to 0.01%, indicating there's an even balance between Longs and Shorts.

BTC's open interest (by number of coins):

1. A chart displaying Bitcoin futures open interest with BTC price overlay, showing a steady increase in open interest over time.

Technical analysis

From a chart perspective, we can keep this quite simple.
BTC is currently range-bound between the major horizontal resistance at $106,900 (call it $107k) and the horizontal support of $98,900 (call it $99k).
Beyond $107k, the all-time high of $109k will need to be broken. If this happens, then we'd expect the price to push on to $120k in the weeks that follow. However, we expect more range-bound price action for a sustained period first.
In terms of further horizontal supports, we have $95,700 and then $91,500. We don't expect the price to fall back below $91,500. However, if it did, $87,100 is likely the stopping point and an area we'd bid aggressively.
The RSI has broken out of the downtrend line, but resistance is now found at the underside of the moving average.

2. A BTCUSD daily candlestick chart with key resistance, support levels, trend lines, and RSI indicator, highlighting potential downward movement.

Next Support: $98,900
Next Resistance: $106,900
Direction: Bearish/Neutral
Upside Target: $106,900
Downside Target: $95,700

Get the latest Bitcoin price prediction. Dive into our detailed analysis to stay one step ahead!

Cryptonary's take

Bitcoin currently ranges between $95,700 and $106,900. Whilst we're in this post-Trump inauguration period where too much good news was priced in (the market had overpriced against a realistic reality), it's possible now that we do see a pullback for BTC in the coming 1-2 weeks. It's possible BTC pulls back to $95,700 to say $98,900.

We have highlighted this with a yellow arrow on the chart. We'll add two other things to this. Firstly, if BTC does pull back 5-10%, it doesn't necessarily mean Alts/memes will have another major pullback. Looking across the board, we feel most of the Alts/Memes have done the substantial portions of their pullbacks, but we also think they'll be range-bound for a while.

Secondly, in a range-bound market, it doesn't mean there won't be good pockets of outperformance. For example, $HYPE over the last 3-5 days has heavily outperformed.