Bitcoin

Bitcoin (BTC) Set for Breakout: Key On-Chain Indicators Point to Imminent Uptrend Above $100K

Bitcoin (BTC) is positioning itself for a potential breakout from the $90K–$108K price range, with several on-chain indicators signaling a decisive move on the horizon. The latest metrics suggest that BTC’s ongoing consolidation phase may soon come to an end, and a major price surge could be in store.

One of the most telling indicators is the Choppiness Index (CI), a tool used to measure the level of price consolidation. According to on-chain analyst Checkmate, historical data shows that a sharp rise in the CI (marked by red) typically indicates periods of consolidation (purple blocks). In contrast, a drop in the CI tends to coincide with sharp upward or downward trends (orange blocks). With the CI currently at an inflection point after a recent surge, any retreat could signal the beginning of a fresh BTC uptrend.

Supporting this optimistic outlook is the easing BTC supply pressure from long-term holders (LTHs). Glassnode’s latest report revealed a significant decrease in selling pressure from LTHs, with volumes deposited to exchanges for sale dropping sharply. After profit-taking peaked at $4.5 billion in December, it has since fallen to under $400 million in January. This decline in selling pressure has resulted in a trend shift, with more LTHs opting to accumulate BTC rather than distribute it.

Additionally, Glassnode highlighted that Bitcoin’s 60-day price range has tightened, a key indicator of an impending volatility surge. Historical trends show that similar compressed price structures have often preceded bullish breakouts, particularly during the early stages of bull markets or just before significant price surges.

Bitcoin
Source: Glassnode

When combined, these indicators paint a compelling picture for Bitcoin’s future. A breakout above the $100K mark could be on the cards, with macroeconomic factors and new policies under the pro-crypto Trump administration potentially acting as catalysts for this anticipated rise. The next few weeks could prove crucial for Bitcoin’s price trajectory, as the market awaits confirmation of this bullish shift.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.

Also Read: Bitcoin Poised to Hit $122K by February, Says 10x Research – Consolidation Expected After Surge

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