Bitcoin price analysis has become more fascinating as the token maintains a sluggish, sideways trend for more than a week. The rejection from levels above $71,000 has slashed the bullish strength to a large extent. Therefore, the traders now expect the BTC price to maintain the prevailing sluggish trend for some more time. However, from a longer perspective, it appears that the market dynamics for Bitcoin are expected to change, which may have a major impact on the price.
Does this mean there may be a downward trajectory for the Bitcoin price?
The current trade setup suggests the major tokens, including Bitcoin, are expected to maintain a sluggish trend throughout the month. The volume has been flowing into the trending altcoins and hence, after extracting the profits, the liquidity flow may be back to the star crypto. This could be when, probably in the first few days of H2 trade, the BTC price is expected to display a diverse trend.
The historical Bitcoin price is displaying a wider picture, which suggests the price is heading towards forming a new ATH in the first few weeks of 2025. The price has followed a parabolic curve during the past bull run and hence now it appears it has reached the midpoint of the rally. Besides, the RSI is displaying a well-planned rally after completing a couple of recovery curves and is now about to head south.
According to this calculation, the BTC top should be around $85,000 but if a huge change in market dynamics is seen, then the RSI may undergo a u-turn, which may support the bullish narrative.
Now, the Bitcoin price may either continue to consolidate & reach the curve, which may offer a strong base to trigger a massive upswing. This may compel the price to continue with the sluggish trend for another couple of months, beyond which it may rise along the curve, which is acting as a strong support.
Or else, if the selling pressure intensifies, the BTC price may drop to the support level below $60,000, which may attract bulls who may initiate a fresh bull run to $85,000. Therefore, the next couple of weeks until the half-yearly close may be extremely crucial, as the closing levels may decide the next course of action for Bitcoin.