Consolidation Phase Nearing Its End

• Bitcoin remains in a narrow range, with a breakout expected by the end of January. Long-term growth still looks promising.
• Support at 94k, resistance at 110k, signaling potential breakout soon. Be ready for a possible dip to 87-89k.
• Market consolidation is expected to continue, but January’s breakout could lead to significant upward movement.

The price of Bitcoin (BTC) fluctuates only between important support and resistance levels, forming a limited trading range. Prominent cryptocurrency analyst Doctor Profit recently shared his outlook for the upcoming weeks, highlighting the likelihood of sideways market movement through the end of January.

According to his analysis, Bitcoin’s price is poised for a breakout as it nears the 87-89k region. This consolidation phase has been predicted for months, and Doctor Profit’s long positions, strategically placed at 53k, 63k, and 90-92k, have shown substantial promise.

Market Consolidation: Support and Resistance Zones

The current Bitcoin price is hovering around 94,343.17 USDT, which lies near the lower support zone. On the chart, two key horizontal zones are identified: one at approximately 94k USDT, acting as support, and the other at around 110k USDT, serving as resistance. 

Bitcoin has repeatedly tested these levels, creating a range-bound market environment. The most recent price movement saw Bitcoin move toward the upper resistance zone of 110k, only to be rejected and fall back toward support.

This consolidation pattern indicates that neither bulls nor bears have secured a strong market advantage. The reduced volatility in recent candlesticks suggests a slowing momentum, reinforcing the likelihood of further sideways trading. As Bitcoin approaches the 87-89k support region, traders can anticipate potential volatility, including the possibility of a “scam wick” dip to capture liquidity before the next upward movement.

Breakout Expectations: January to February Surge

Despite the market’s current sideways behavior, Doctor Profit predicts a breakout will occur by the end of January or early February. His expectation for a massive surge remains intact, despite the ongoing consolidation phase. 

As long as Bitcoin holds its position above the 87-89k region, the setup for a strong breakout toward higher levels remains feasible. Additionally, upcoming economic data, such as the PPI and CPI releases, may introduce some volatility, but the market is expected to respond positively, aligning with the current predictions.

Traders prepare for potential fluctuations and remain focused on the long-term upward trend. Bitcoin’s breakout, once it happens, could lead to price movements, particularly as the market transitions out of its current consolidation phase.