- Binance net taker volume and Binance’s Bitcoin funding rates, are showcasing the probability of consolidation in BTC price.
- The price of Bitcoin has not officially entered consolidation yet, as it is above short-term EMAs.
- Caution is advised for investors as uncertainty looms over Bitcoin’s trajectory.
In recent months, BTC price predictions have stirred considerable interest among analysts, both big and small. Reports released in late 2024 hinted at ambitious targets, generating excitement in the crypto community.
However, the anticipated momentum is yet to materialize, as even after significant major events like Donald Trump’s inauguration, it didn’t help much. Now, all eyes are on Bitcoin reserve.
Moreover, people were anticipating a good movement like the November rally but showed a large lack of momentum. This lack of movement has left many experts feeling uneasy.
Notably, the CEO of CryptoQuant has expressed a cautious outlook, and their QuickTake posts are increasingly filled with uncertain outlooks. As the market grapples with uncertainty, the sentiment among analysts is shifting toward a more conservative approach.
Continue reading to explore what this means for the future of Bitcoin.
Is Bitcoin Price Slowing Down?
As it is evident that following Donald Trump’s inauguration, BTC price faced a notable sell-off from new ATH peak of $109K. This was caused by the lack of any mention of the word “cryptocurrency” during his speech, which left investors feeling uncertain.
After the speech, within hours, Binance’s net taker volume turned sharply negative. This reflected a strong shift in sentiment toward short-term pessimism.
However, the mood shifted the day after the inauguration. Just before the U.S. market opened, Binance’s net taker volume rebounded to positive territory, indicating renewed buying pressure. Yet, by January 22nd, this momentum faded as Bitcoin’s price dipped below $106K.

This trend suggests a gradual move toward negative territory, raising cautionary flags for investors.
Moreover, in a recent QuickTake, CryptoQuant highlighted historical BTC price movements alongside an analysis of Binance’s Bitcoin Funding Rates from a long-term perspective.
They identified three critical phases during the 2020-2021 bull run, which may offer insights into the current market dynamics.

According to their analysis, the momentum peaked in the second phase of the Bitcoin rally; the analyst expressed reluctance to bet on this phase.
He wishes to wait for the third phase to commence, raising the cautionary stance on BTC price.
Similarly, shortly after this analysis, the CEO of CryptoQuant took to X to advise crypto participants to exercise caution, especially those using leverage.
He noted that Bitcoin has reached a point where it could either pull back or trade sideways for an extended period.

While he acknowledged that on-chain indicators remain bullish, he expressed uncertainty about the continuation of the bull cycle.
In the short term, he believes the price is unlikely to rise, mirroring the cautious sentiment shared by other analysts in the space.
Is Strategic Bitcoin Reserve is Now the Main Centre of Focus?
Recently, now, a growing number of organizations, states, and countries are eager to establish their strategic Bitcoin reserves.
Recently, Oklahoma joined the ranks of U.S. states exploring legislation that would allow the state to hold Bitcoin as an asset.
The state’s proposed bill aims to allocate state funds for the acquisition and storage of Bitcoin, with lawmakers arguing that this move could help protect citizens’ purchasing power.

Meanwhile, New Hampshire is also considering a new bill that would create a Bitcoin reserve for the state treasury.
If passed, New Hampshire could become one of the first states in the U.S. to hold Bitcoin alongside traditional assets like gold, silver, and platinum.

If these initiatives come to fruition, BTC price could be poised to reclaim its previous all-time high (ATH) and potentially set new records.
Is BTC Price About to Wear Shakles on its Legs?
Given the trend highlighted by CryptoQuant, BTC price is currently trading on a precarious edge. At the time of writing, BTC is priced at $101,500, reflecting a 1.89% decline over the past 24 hours.
The recent rally has been characterized by mild volatility as BTC price enters a consolidation phase after breaking its all-time high (ATH), reaching $109K.

Technical indicators suggest that the god-father coin may be poised for a potential leap. But, analysts wish not to overlook the uncertain outlook.
They are closely monitoring key metrics such as Binance’s Bitcoin funding rates and net taker volume, and more metrics. Additionally, the 200-day EMA sits on around $80K, while short-term EMA bands are positioned at $96K and $100K, highlighting important support levels to watch.
As the market outlook remains uncertain, it’s crucial for investors to exercise caution and avoid falling into the trap of FOMO.
Disclaimer
In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.