Bitcoin Technical Analysis: Consolidation at $104K—The Calm Before the Storm?

Bitcoin is trading at $104,589 with a 24-hour trading volume of $42.32 billion, a market capitalization of $2.07 trillion, and an intraday price range of $104,133 to $107,006, signaling consolidation after a strong rally.

Bitcoin

The hourly chart shows bitcoin (BTC) fluctuating between $104,000 and $106,000, with fading momentum following a rejection near $107,149. Support levels are holding at $103,000 to $104,000, while resistance remains capped at $106,500 to $107,000. Trading volume has decreased significantly, suggesting indecision or a pause ahead of a potential catalyst. Intraday traders may find opportunities to buy near $104,000 with a target of $106,500, employing a stop-loss at $103,000 to minimize downside risks. A breakout above $107,000 could open the door for a more substantial move higher.

BTC/USD 1H chart on Jan. 25, 2025.

The 4-hour chart depicts range-bound activity between $104,000 and $109,000, with declining momentum on pullbacks. Support at $104,000 offers short-term buying opportunities, while resistance at $107,000 and $109,000 may trigger selling unless there is a breakout above $110,000. Volume analysis highlights a lack of strength in the retracement phase, and traders should approach resistance zones cautiously, employing strict stop-loss strategies to mitigate risks.

BTC/USD 4H chart on Jan. 25, 2025.

The daily chart underscores bitcoin’s broader uptrend, which has seen a rally from $89,164 to $109,356, followed by consolidation. Key support lies in the $98,000 to $100,000 range, while resistance is clustered between $109,000 and $110,000. Volume has tapered off, indicating weakening momentum, but the larger trend remains intact. Swing traders may consider entering near support levels, targeting resistance areas for profit-taking, while using stop-losses below $98,000 to manage risk.

BTC/USD 1D chart on Jan. 25, 2025.

Oscillators reflect mixed sentiment, with the relative strength index (RSI) at 60 and the Stochastic at 76 both neutral, while the momentum oscillator signals a sell at 4,023. The moving average convergence divergence (MACD) indicates a buy at 2,169, aligning with the strong buy signals from exponential moving averages (EMA) and simple moving averages (SMA) across all timeframes. Bitcoin’s price is trading significantly above its 10-period to 200-period moving averages, emphasizing bullish momentum in the broader trend.

Bull Verdict:

Bitcoin’s strong support levels, bullish signals from exponential moving averages (EMA) and simple moving averages (SMA), and a recent uptrend from $89,164 to $109,356 suggest that the broader market sentiment remains optimistic. A decisive breakout above $109,000 with strong volume could propel bitcoin toward $115,000, reinforcing a bullish outlook.

Bear Verdict:

The lack of volume during the consolidation phase, coupled with neutral oscillator readings and fading momentum, raises concerns about the sustainability of bitcoin’s rally. If support at $104,000 breaks, the price could retest $100,000 or lower, potentially marking the start of a broader corrective phase. Traders should remain cautious if resistance at $107,000 and $109,000 continues to hold.