Bitcoin (BTC), the world’s largest cryptocurrency by market capitalization, appears to have failed to meet expectations for massive upward momentum following the cryptocurrency-friendly presidential inauguration of Donald Trump. Currently, the market as a whole appears to be struggling, with a few cryptocurrencies experiencing a price surge while others appear to be moving sideways or consolidating.
Bitcoin’s Ongoing Consolidation
Amid this market uncertainty, BTC appears to be consolidating in a tight range near the $108,000 resistance level, between $100,000 and $108,000. However, Bitcoin price is now falling towards the lower boundary of consolidation.
Bitcoin Technical Analysis and Price Prediction
According to expert technical analysis, BTC appears bearish as it has formed a bearish divergence on the daily time frame.
A bearish divergence occurs when the price of an asset is making higher highs, but a technical indicator, such as the Relative Strength Index (RSI), is making lower highs. This divergence indicates that the bullish momentum is weakening and suggests a potential price decline in the coming days.
Based on recent price action, if BTC stays below the $108,000 level, it is highly possible that it could decline by 11% to reach its next support near the $92,000 mark. However, it will be difficult for an asset like BTC to experience a significant price drop, even with a pro-crypto president in office.
BTC prediction from BlackRock CEO
In addition to recent price action and technical analysis, on January 22, 2024, BlackRock CEO Larry Fink made a bold prediction that BTC could reach $500,000, $600,000, or even 700,000 $ in the future, as CoinPedia reports.
This planned BTC target will only be achieved once it clears the resistance at $108,000; otherwise, the price will likely continue to consolidate further.
Current Price Dynamics
Currently, BTC is trading near $104,100 and has seen a price drop of over 2.65% in the last 24 hours. During the same period, its trading volume fell by 35%, indicating less participation from traders and investors compared to previous days.
