Bitcoin Poised for Major Breakout as Price Stabilizes Around $100K

Bitcoin's price action has been showing signs of a significant shift, with recent data suggesting that the cryptocurrency may soon break free from its current range. As Bitcoin tested the $100,000 support level on January 21, analysts are predicting a dramatic return to trend, with potential moves beyond the six-figure price point.

The $100K Threshold Holds Strong

Bitcoin's price has been facing continued selling pressure, with the $100,000 mark proving to be a crucial level of support. Data from Cointelegraph Markets Pro and TradingView highlighted the persistent pressure from sellers as Bitcoin remained close to the $100K threshold. Despite the volatility surrounding the inauguration of US President Donald Trump, which failed to deliver any positive announcements regarding Bitcoin or crypto, Bitcoin bulls were left disappointed. As a result, the price remained largely stagnant, and traders saw liquidations of long positions totaling nearly $500 million, according to CoinGlass.

Despite these short-term setbacks, some traders are eyeing a potential breakout, with targets pointing to a price drop to the mid-$90,000 range before a rebound.

A Tight Range with Key Liquidity Targets

Hyblock Capital, a trading platform, noted that Bitcoin is currently targeting liquidity on both sides of the $100K level. Traders are contemplating whether Bitcoin will see another sweep of liquidity in the mid to high $90,000 range, potentially setting the stage for a bullish reversal. One prominent trader, Crypto Chase, indicated that he would consider a long position if Bitcoin reaches around $99,500, expecting that the local bullish trend will continue if this support holds.

However, the trader cautioned that a drop below $96,000 would invalidate this bullish outlook. Fellow trader XO also pointed out that the price range from December—between $90,000 and $108,000—remains relevant. For now, the market is expected to remain within this range, with both bulls and bears continuing to speculate on Bitcoin's next move.

The Bitcoin “Choppiness Index” Signals a Potential Breakout

Trader and analyst Matthew Hyland highlighted the importance of Bitcoin's 10-day simple moving average (SMA), which currently stands at approximately $99,969. Bitcoin recently tested this SMA, touching it before briefly reaching new all-time highs, only to fall back below resistance. According to Hyland, the next few days will be crucial for determining whether Bitcoin can break upward or risk losing momentum if it fails to maintain above the 10 SMA.

James Check, creator of the on-chain data resource Checkonchain, provided an additional perspective, using the Choppiness Index to assess Bitcoin’s market behavior. The Choppiness Index is a volatility indicator that can help identify trends in price movement. According to Check, the index is now "fully gassed" and signaling that Bitcoin is ready to trend away from its $100K level, suggesting that the sideways consolidation phase may soon come to an end.

Check emphasized that his earlier thesis, presented in late November, predicted several weeks of sideways movement before Bitcoin could break free from the $100K range. As of now, it appears that this breakout may be imminent.

What’s Next for Bitcoin?

With Bitcoin's price stabilizing near the $100K support level, traders and analysts are closely monitoring key indicators to determine the next big move. The combination of liquidity sweeps, the 10-day SMA, and the Choppiness Index all suggest that Bitcoin may soon enter a new price trend—potentially setting the stage for a breakout to higher levels.

As the market remains in a tight range, the next few days could be critical for Bitcoin's trajectory. If Bitcoin can hold above its current support levels, it may be poised for a return to an upward trend, possibly pushing beyond the $100,000 mark and towards new all-time highs. However, if the price falls below key levels, it could signal further consolidation or even a bearish reversal.

For now, the cryptocurrency market continues to watch Bitcoin's price action with anticipation, awaiting the next chapter in its journey.