Is Bitcoin Bottom In? BTC's Price Action is Inverse of December Peak Above $108K

The pressing question connected crypto traders' minds is: Has bitcoin's (BTC) terms weakness tally its course, oregon is determination much to come?

The erstwhile appears to beryllium the lawsuit arsenic Monday's terms action, characterized by a swift betterment from intraday lows, contrasted with mid-December erstwhile the rally stalled and turned little from grounds highs supra $108,000.

On Monday, BTC initially fell arsenic investment banks scaled back expectations for Fed complaint cuts, with immoderate discussing the imaginable for complaint hikes pursuing Friday's stellar jobs report, causing prices to dip beneath the little extremity of the cardinal enactment portion of $90,000-$93,000 arsenic large U.S. banal indices gapped lower.

The breakdown of the support, however, was short-lived, and by the extremity of the day, BTC had surged backmost to $94,000, leaving down a classical "long-legged Doji candle."

The agelong wick signifies downtrend exhaustion, indicating that though sellers initially drove prices lower, buyers yet overpowered them. This signifier is often seen arsenic a imaginable awesome of a bottom, chiefly erstwhile it occurs astatine cardinal enactment levels oregon aft a notable terms drop, arsenic is the lawsuit for BTC.

The long-legged doji has emerged astatine the enactment portion (horizontal lines) that has consistently restricted the downside since precocious November.

An inverse of the supra is what we saw connected Dec. 16 erstwhile the bulls failed to support prices astatine grounds highs supra $108,000, printing a doji candle with a longer precocious shadow. That was a motion of the uptrend moving retired of steam, with sellers looking to reassert themselves.

What next?

While Monday's terms enactment hints astatine a imaginable bottom, confirmation is required successful the signifier of a decisive determination supra the day's precocious of $95,900.

Chart-driven directional traders typically hold for that earlier hitting the marketplace with caller bargain orders. Meanwhile, Monday's debased adjacent $89,000 is present the level to bushed for the bears.

Note that BTC's demand-supply dynamics proceed to thin bullishly. As Bitwise's Head of Research - Europe Andre Dragosch pointed retired connected X, the firm request for BTC has already outpaced the proviso of caller coins this year.

Price volatility whitethorn prime up again connected the backmost of Wednesday's U.S. CPI report, which could power Fed complaint chopped expectations.

"After Monday's crisp drop, Bitcoin rebounded from a debased of $89K, arsenic traders await the U.S. CPI study connected Jan. 15. Major altcoins followed suit, with galore losing much successful the past 24 hours," Neal Wen, caput of planetary concern improvement astatine Kronos Research, told CoinDesk.

"Market watchers are present focused connected signs of stableness to spot further downside oregon upside," Wen added.