Bitcoin shows signs of January consolidation as key indicators align

Beincrypto reports that several technical, on-chain and exchange indicators suggest January could be the month when Bitcoin enters a critical consolidation phase as prices hover near long-term moving averages. According to the on-chain analytics platform Alphractal, Bitcoin has fallen below most daily moving averages from the 7-day to the 720-day cycle, leaving only the MA720 near $86,000 intact.

Alphractal said that historically these conditions form an optimal dollar-cost averaging (DCA) zone for long-term accumulation and that for this zone to occur BTC would need to drop below $86,000; the period when price breaks through the MA7–MA720 range has tended to last several months.

On-chain and exchange data add context. Swissblock reported network growth at lows not seen since 2022 alongside continuing liquidity drains, which previously coincided with a consolidation phase before recovery; Swissblock also noted signs of renewed adoption are still needed and said a similar pattern could lead to a new all-time high if it plays out.

Key Topics

Crypto, Bitcoin, Alphractal, Swissblock, Cryptoquant, Binance