Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
The stages of Bitcoin consolidation often seem uncomfortable for traders. It tests patience and conviction. However, these periods can also create opportunities for investors who follow disciplined capital management plans.
Several signals indicate that January could be the month in which Bitcoin enters a critical consolidation phase before recovery.
Sponsored
Sponsored
3 signs indicate that January may be the time when Bitcoin forms a local bottom
Based on technical data, on the chain and exchange, analysts believe that positive signs of a long-term recovery have emerged.
First, the technical data shows that Bitcoin is approaching a zone DCA Ideally based on moving averages (MA).
According to the Alfractal chain analytics platform, optimal long-term accumulation zones often form when the price of Bitcoin falls below all daily averages, from a cycle of 7 to 720 days. This condition creates a “safe zone” in which the price is considered undervalued compared to the long-term trend.
Currently, Bitcoin has broken below most of these moving averages since last November. Only the MA720 remains intact. This level is close to $86,000.
“Bitcoin is very close to one of the best areas to apply the DCA strategy. Historically, these areas have been excellent areas for long-term accumulation. Therefore, the value of Bitcoin should drop below $86,000.” Alfractal.
Sponsored
Sponsored
Bitcoin falling below $86,000 does not necessarily mean that it will bottom out immediately, but historical data does. indicate Bitcoin’s breakout period between MA7 to MA720 will probably last several months.
Second, on-chain data shows the growth of the Bitcoin network at its lowest level in years. Although it seems negative, historical patterns indicate that it may precede the recovery phase.
According to Swissblock, an investment fund and market information provider, weak network activity combined with low liquidity indicates that Bitcoin is in an accumulation or consolidation phase before its next major move.
Sponsored
Sponsored
“The growth of the network has reached the lowest levels not seen since 2022, while liquidity continues to drain. In 2022, similar network levels have led to a consolidation phase for Bitcoin as the growth of the network begins to recover, even when liquidity remains weak and collapse,” said Swissblock.
Swiss Block also noted that signs of renewed adoption are still essential. If this scenario comes true, a similar rally in 2022 could push Bitcoin to an all-time high this year.
Third, the stock market data show that the selling pressure from whales has decreased significantly in the past month. This change creates a more supportive environment for price consolidation and recovery.
Sponsored
Sponsored
Second For the data CryptoQuant, Bitcoin flows from whales to exchanges have decreased dramatically, especially on Binance.
In particular, Bitcoin flows from large transactions ranging from 100 to more than 10,000 Bitcoins have decreased by approx. 8 billion dollars per month at the end of November 2025 at about $2.74 billion currently. This change in behavior significantly reduces the sales offer. It supports price stability and increases the potential for recovery.
The combination of technical signals (prices trading below key moving averages), data on the chain (down network growth), and stock market metrics (down whale sales) suggest that Bitcoin is entering a consolidation phase ideal for forming a local fund.
However, the above data is not enough to determine an accurate bottom price. In addition, many external uncertainties remain unknown. These possibilities include: Return of customs pressures Amid geopolitical tensions and market impact A change in the leadership of the Federal Reserve is coming.
