BTC Stuck, ETH Eyes Rebound

Almost half of January has passed, and the crypto market still isn’t showing any signs of strength. With many altcoins already hovering around strong support levels, will bullish momentum resume soon? Let’s explore the possibilities together.

7 Days Heatmap

‍BTC is still struggling within a narrow range between $90,000 and $100,000, closing the week by -2.25%. This ranging market gave altcoins some room to surge slightly at the end of the week but wasn’t enough for them to break a previous major high.

7 days crypto heatmap showing overall bearish sentiment with BTC down by -2% and ETH by -4%. — *Crypto Heatmap 7-Days*

BTC Analysis

‍As mentioned in the last market outlook this week, BTC is currently in a distribution phase, forming a wide head and shoulders pattern.

If the $91,000 neckline breaks to the downside, the pattern will be activated, signaling potential further declines in the crypto market.

BTC daily chart hovering in a range in the shape of a head and shoulders. — *BTC Chart - Daily Timeframe*

In parallel, for the bulls to step in and invalidate the bearish scenario, a break above $100,000 is required.

ETH Analysis

‍After dropping below the $3,500 support, ETH formed another bearish impulse, as highlighted in our last ETH update.

Currently, ETH is retesting the lower boundary of the wedge pattern, which intersects with the $3,000 support zone.

ETH daily chart overall bearish trading within a falling wedge pattern and currently approaching the $3,000 round number. — *ETH Chart - Daily Timeframe*

As long as the $3,000 support level holds, we anticipate a rebound toward the $3,500 level in the near future.

Quote of the week

‍Investing should be more like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas.
~ Paul Samuelson

Closing Remarks

‍In summary, The crypto market remains dull as January progresses, with BTC stuck in a narrow range between $90,000 and $100,000, closing the week with a 2.25% decline.

BTC appears to be in a distribution phase, forming a head and shoulders pattern. A break below the $91,000 neckline could trigger further declines, while a breakout above $100,000 is needed to invalidate the bearish outlook.

Meanwhile, ETH has fallen below the $3,500 support and is now retesting the lower boundary of a wedge pattern near the $3,000 support zone. A hold above this level could lead to a rebound toward $3,500, keeping bullish hopes alive in the short term.

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