Bitcoin RSI Hints at $105K BTC Price Rebound as Bull Signals Multiply

Bitcoin’s price has shown signs of a potential rebound after recent volatility, with the Relative Strength Index (RSI) hinting at a possible recovery toward $105,000. Analysts are closely watching technical indicators to assess the strength of this potential move. The current price environment reflects a mix of bearish and bullish signals, with institutional activity and market sentiment playing key roles.

The 4-hour chart shows Bitcoin trapped within a symmetrical triangle, oscillating between support at $87,000 and resistance at $92,000. This pattern suggests indecision among market participants, with the likelihood of a sharp breakout when the range is eventually broken. The current consolidation phase has led to mixed signals, with some analysts seeing it as a sign of strength, while others remain cautious.

Technical indicators like the Moving Average Convergence Divergence (MACD) and the Awesome Oscillator (AO) show conflicting trends. The MACD has formed a bearish divergence, signaling weakening momentum. Meanwhile, the AO has flashed a green histogram bar, suggesting some potential for a short-term rebound. The market remains in a tug-of-war between bulls and bears, with no clear direction.

Why Did This Happen?

Bitcoin’s recent price action has been influenced by several factors, including ETF inflows and institutional demand. On January 6, US-listed spot Bitcoin ETFs recorded an inflow of $697.25 million, marking the highest single-day inflow since early October. This renewed institutional interest has provided a floor for prices and reinforced bullish sentiment.

Corporate activity has also played a role. Strategy Inc., led by Michael Saylor, recently purchased 1,287 Bitcoin, increasing its total holdings to 673,783 BTC. The firm also increased its USD reserve by $62 million to $2.25 billion, signaling a stronger liquidity position and long-term confidence in Bitcoin.

How Did Markets React?

Bitcoin’s price closed above the $90,000 level on Saturday and tested the 61.8% Fibonacci retracement level at $94,253 on Monday. As of January 9, the price is consolidating just below $93,000, a key resistance zone. A sustained close above $94,253 could push the price toward the psychological $100,000 level. The RSI on the daily chart currently reads 64, indicating bullish momentum is gaining traction.

Ethereum (ETH) has also shown resilience, trading above $3,000 despite a cooling in futures positioning. While the 50-day EMA at $3,127 is acting as a barrier, the RSI at 51 indicates weakening bullish momentum. A close above the 100-day EMA at $3,298 would confirm a bullish turnaround.

What Are Analysts Watching Next?

Market participants are focusing on several key levels. The $92,000 resistance and $87,000 support are critical for determining Bitcoin’s next move. A successful break above $92,000 could lead to a test of the $100,000 psychological level, while a breakdown below $87,000 could see prices retest $80,633.

Analysts are also watching the 20 EMA and 50 EMA as key indicators of trend strength. Bitcoin is currently close to slipping below the 20 EMA, which has already fallen under the 50 EMA. If the price loses both, it would signal weakening bullish momentum.

Institutional positioning remains a key factor. ETF inflows and corporate purchases are reinforcing the bullish case, but liquidity has shifted toward traditional markets such as gold and stocks. This shift in capital may slow Bitcoin’s recovery and prolong its consolidation phase.

Bitcoin’s ability to break out of its range and form a new support zone will determine the next phase of its price action. If buyers can reclaim key moving averages, the path to $102,796 becomes more viable. However, if bears take control and push the price below the lower end of the range, downside risk increases.

Market sentiment remains cautious, with attention on how the $90,000 level is defended. A close below this level could trigger further selling, especially if ETF outflows continue. For now, the price remains in a waiting game, with investors watching for a clear signal of momentum from either side.