Bitcoin Down 8% In A Week: What Does Technical Analysis Say?

Bitcoin BTC/USD has dipped below $91,000, a move that aligns with historical post-halving patterns, according to prominent technical analysts.

How Long Will Bitcoin's Consolidation Last?

Technical analyst Kevin highlighted that Bitcoin's 3-day price chart and the Moving Average Convergence Divergence (MACD) indicator have been reliable for tracking bull market trends.

Historical data shows that MACD downside crosses often precede consolidation periods lasting 30 to 174 days. Kevin points out a potential cyclical pattern:

Previous consolidations: 164, 30 and 174 days.
Current consolidation: 24 days so far, suggesting 35-40 days of range-bound trading before a breakout.

In another tweet, Kevin highlighted that Bitcoin faces substantial liquidity blocks between $86,000 to $90,000 and $104,000, suggesting possible sweeps in both directions that could cause choppy price action for the month.

Macro caution remains prudent until USDT Dominance breaks below 3.7% mark and BTC surpasses $108,000.

Altcoins require careful risk management, particularly for traders.

For long-term holders from bear market lows, patience and awaiting further data are key strategies.

Also Read: Bitcoin To Bounce Back In Q1 But Beware 20% Corrections, Analysts Warn

Lets be realistic here. We have massive liquidity blocks in both directions from 86K to 90K all the way to 104K. The most logical thing I can say is we likely sweep all of it and continue to chop up and down for the rest of the month. I will continue to be macro cautious about… pic.twitter.com/FluYcCW0uM
— Kevin (@Kev_Capital_TA) January 13, 2025

What's Next: Adam, a prominent whale trader, analyzed weekend trends, predicting downside price "chop" through the end of the month.

He highlighted the following key insights:

CME data: Non-reportable trades are heavily short—a pattern historically followed by rallies.
Seasonality: A weak January could lead to a strong February.
Spot data: Sell-heavy order books and clustered open interest suggest patience is needed.

For a long position, the ideal setup includes an open interest drop, increased spot demand and alignment with a high-volume node at a reasonable price action level.

While the market trades within the range’s point of control, patience is critical, as the focus is on trading at extremes when markets are out of balance.

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