Analysts have noted a signal of a local day for the BTC price.
The short-term SOPR indicator has signaled a signal that often accompanies local and cyclical market reversals. According to analysts, the spike below 0.94 indicates the current decline is fading. The metric has been leveling off in recent months, making this divergent momentum even more significant and potentially reflecting the formation of a local price bottom. Further confirmation comes from the technical picture: Bitcoin is simultaneously oversold on 3D and daily timeframes, while the Fear and Greed Index remains in the Extreme Fear zone.
This set of signals coincides with the previously discussed dead cat bounce pattern and the potential for a death cross formation on the BTC price chart. “Considering the depth of the current decline and comparison with similar phases after previous growth cycles, the most likely short-term recovery range is estimated at $99,000–$105,000,” the experts noted. Less likely, the price could approach the 50SMA line on the 3-day timeframe, repeating the 2021 structure. Analysts expect the next two weeks to be the main phase of the upward pullback amid a return of short-term demand.
The medium-term forecast calls for a sideways movement between $78,000 and $105,000 until mid-February. The dynamics will depend on the overall stock market sentiment, where analysts believe the SPX index has room to decline to even moderately oversold levels. High volatility in traditional markets could impact the strength and duration of the current rebound.
If the BTC price quickly rises above $100,000, researchers expect a sharp rise in optimism and the emergence of “Santa Rally” rhetoric. A breakout above $105,000 could trigger discussions about a new all-time high and heightened attention from retail investors. However, experts warn that this wave of positive expectations could be temporary and lead to false predictions amid the persistence of the bearish phase. The current fluctuations are seen as a natural part of preparation for the next stage of a more significant decline.
Source: cryptonews.net
