Bitcoin: lower strength

After a bumpy end of the previous year, BTC started the year 2025 with a positive sentiment, however, with lower trading volumes. This is usual for the first week of the year, considering that many investors took some time for the New Year`s celebrations. BTC was traded within a range of $92,3K up to $98,6K reached as of the weekend. It could be expected that the market will soon start gearing up for trading the year 2025, with high expectations of the new US Administration entering the office on January 20th. These would be days to watch when the crypto market is in question, considering pre-election narrative in favour of the cryptos and current market rumours that the US should hold part of reserves in BTC.

The RSI continues to move around the level of 50, indicating that the market is not ready to take the trading side. Within the previous period, a clear oversold side has not been reached, while there is currently no strength for a move toward the overbought market side. The moving average of 50 days continues to modestly diverge from MA200, indicating that the cross is still not in the store in the coming period.

Start of the year is usually a relatively relaxed period of time, considering the Holiday season. However, from the week ahead, it could be expected that investors will start gearing up for the trading season in 2025. Based on current charts, there is some probability that BTC might revert a bit from current levels, in order to test the support line at 95K. On the opposite side, the 100K still holds as a target, however, it is questionable if it is going to be reached in the week ahead.