Bitcoin price’s had an up-and-down few weeks. While there was a small recovery, Bitcoin is still having trouble breaking the important $100,000 mark, let alone reaching $105K.
Experts think Bitcoin is struggling because there isn’t enough trading volume and market liquidity. As January goes on, understanding these issues can help us guess Bitcoin’s price shortly.
Bitcoin’s Price Struggles After Hitting an All-Time High
Bitcoin reached its highest price ever, $108,300, in mid-December 2024. This caused a lot of excitement and speculation in the crypto world. However, since then, Bitcoin has had trouble staying above $100,000. However, since then, Bitcoin has faced challenges in maintaining its momentum, leading to a decline below the $100,000 mark.
However, that excitement quickly faded as Bitcoin’s price dropped, losing more than 10% of its value in the weeks following its all-time high. As of early January 2025, Bitcoin remains below $100,000 and has failed to break through the $105,000 barrier.
One of the biggest factors holding Bitcoin back from a substantial rally is its trading volume. In the days following the initial drop from $108,300, Bitcoin’s daily trading volume decreased significantly. Trading volume has remained down by 91% compared to its $743 million peak on December 5, when Bitcoin first crossed the $100,000 milestone.
The drop in trading activity is mainly because of the holiday season when there is usually less activity in financial markets. With not much buying or selling pressure, Bitcoin’s price is staying in a small range and is unable to reach new highs.
Why Is Bitcoin Struggling to Break $105K?
Low Trading Volume
The biggest challenge to Bitcoin’s rise is the lack of trading activity. According to CryptoQuant analyst Axel Adler, Bitcoin needs more trading to help it go up strongly.
Bitcoin’s price depends a lot on market activity. When there isn’t enough buying pressure because of low trading volume, it creates resistance at important price levels, like $98,000 and $100,000. Without new money coming into the market, Bitcoin finds it hard to break through these levels.
Holiday Season Illiquidity
During the holiday season, there is usually less activity in the financial markets, and Bitcoin is no exception. With fewer trades and less participation, Bitcoin has been trading below important price levels. As the market starts to recover, Bitcoin may see more price changes, but it’s unclear if it will go above $100,000.
Market Range-Bound Between $95K and $110K
Analysts at Bitfinex think that Bitcoin will stay between $95,000 and $110,000 until the end of January. This means Bitcoin might go up a little, but it could have trouble going past $105,000 because of the current market situation. Since the price isn’t changing much, it shows that investors are unsure about what will happen next. They are waiting for clearer signs, like more trading, better market conditions, and other good signals. Impact of US Presidential Inauguration Bitcoin could also be affected by politics, especially with Donald Trump’s inauguration as President on January 20, 2025. The new government has said it will support crypto more, and many people in the crypto world hope Trump’s rules will be clearer.
But analysts at Bitfinex say the inauguration might not make Bitcoin’s price go up right away. They think it will help create better rules for crypto in the future. While this is a good sign, it may not cause a quick rise in price.
What’s Next for Bitcoin?
Despite the current challenges, there is still hope for Bitcoin in 2025. Bitcoin’s price is showing some recovery after the December correction, and as market liquidity returns, analysts are optimistic that Bitcoin could reclaim the $105,000 price point.
The key to Bitcoin’s future success is increasing trading volume, which would help it break through resistance levels. Also, any good news about rules or improvements in the economy could help Bitcoin’s price rise.
As we move into the new year, it’s clear that Bitcoin’s price will depend on how well it handles these challenges. While the $105,000 mark remains elusive for now, it’s still within reach, provided the market sees an increase in liquidity and volume.
Conclusion:
Bitcoin’s struggle to break through the $105,000 level in January highlights the importance of trading volume, market liquidity, and political developments. Even though Bitcoin is staying within a certain price range, experts are hopeful about its future. Investors should watch the factors that affect Bitcoin’s price, as these could decide if Bitcoin can go over $100K and reach new highs in the next few months.
Also Read: Top 5 Crypto Presales to Watch in 2025: Massive ROI Potential Awaits!
