Bitcoin's "Choppiness Index" data hints at a significant shift in BTC price action.
On January 21, Bitcoin tested the $100,000 support level. This happened as the dust settled after US President Donald Trump's inauguration. Data from Cointelegraph Markets Pro and TradingView showed that sellers kept the pressure on this six-figure price point.
Inauguration Day brought a lot of volatility. However, it ultimately disappointed Bitcoin bulls. Trump didn’t mention Bitcoin or cryptocurrency at all. As a result, long positions faced challenges. Liquidations for long positions in crypto approached $500 million, according to CoinGlass.
“$BTC is targeting the nearest liquidity on both sides,” said trading platform Hyblock Capital in their latest update on X. Traders began to consider another liquidity sweep in the mid to high $90,000 range.
“I’d take a long from 99.5K~ if offered. I think the gray box needs to hold for local bullishness,” shared trader Crypto Chase with his followers, along with a 4-hour chart.
“I’d also accept a sweep of the 97K low, but that’s the furthest it should go. If it spends too much time below 96-97K, my plan might not work. I’m looking to invalidate in the low 90s and aim for new all-time highs.”
Another trader, XO, pointed out that the December BTC price range is still relevant. The lows were around $90,000, and the highs were at $108,000. “December's High & December's Low define the key range for me. Moving out of either side will likely lead to a trend,” they noted.
“For now, the market will keep both bulls and bears guessing. But honestly, it’s just another range, and that’s where my focus remains.”
Trader and analyst Matthew Hyland highlighted the importance of Bitcoin’s 10-day simple moving average (SMA), which is currently at $99,969. “BTC had quite a daily candle. It touched the 10 SMA, then hit new all-time highs, and fell back below resistance but stayed above the 10 SMA,” he told his followers on X.
“On this 10 SMA path, it will need to decide by Friday whether to break upward again or drop below the 10 SMA.”
In a recent update, James Check, the creator of the on-chain data resource Checkonchain, predicted a new BTC price trend would emerge soon. This is due to the Choppiness Index, a volatility tool that now signals the end of a sideways movement phase.
“The Bitcoin Choppiness Index is fully gassed and ready to trend,” Check announced. “As we discussed back in late November, we likely had several weeks of sideways action before moving away from the $100k level. We're finally there.”