3 Reasons Why Bitcoin’s January Is a Critical Consolidation Phase
Analysts suggest January could be a critical consolidation phase for Bitcoin based on technical, on-chain, and exchange data signaling a potential local bottom.Summary
Bitcoin may be entering a critical consolidation phase in January, which could set the stage for a recovery, according to analysts citing three key signals. First, technical data shows Bitcoin approaching an optimal Dollar Cost Averaging (DCA) zone as its price has fallen below most daily moving averages, with the MA720 near $86,000 representing a historical accumulation region. Second, on-chain data reveals network growth is at multi-year lows, which, combined with draining liquidity, historically precedes a consolidation and recovery phase, similar to patterns seen in 2022. Third, exchange data from CryptoQuant indicates a significant drop in selling pressure from whales, with BTC inflows from large transactions falling sharply, reducing sell-side supply and supporting price stability. While these factors suggest an ideal setup for forming a local bottom, external uncertainties like geopolitical tariff pressures and potential Federal Reserve leadership changes remain unaccounted for.
(Source：BeInCrypto)