Bitcoin shows signs of a potential recovery rally in early 2025, but analysts warn that low trading volumes may hinder its ability to breach the critical $105,000 resistance level. Following an all-time high of $108,300 on December 17, 2024, Bitcoin’s price corrected by 10% and has struggled to reclaim $100,000, according to institutional data.
Analysts Predict Range-Bound Trading
Experts at Bitfinex forecast a January trading range of $95,000–$110,000, citing subdued momentum but long-term optimism.
“Range-bound markets are likely as capital diversifies across assets,” Bitfinex noted, emphasizing cautious investor behavior post-December’s correction.
The January 20 presidential inauguration could indirectly influence crypto markets, with hopes for regulatory clarity under the new administration. However, analysts temper expectations:
“Policy developments will unfold gradually; don’t expect immediate price spikes.”
Why Trading Volume Matters for Bitcoin’s Rally
Key observations:
- Daily volume plummeted 91% ($66.7M vs. $743M in early December).
- CryptoQuant’s Axel Adler stressed: “Higher volume is essential for a sustainable rebound.”
- Holiday-season lulls slowed market activity, but recovery is anticipated.
👉 Why Bitcoin’s volume slump could delay its rally
Bullish Long-Term Trends
2025 price projections ($160K–$200K) hinge on:
- Spot Bitcoin ETF growth ($110B AUM).
- Institutional adoption accelerating.
- Supportive U.S. financial policies.
FAQs
Q: Will Bitcoin’s price drop further in January?
A: Analysts expect stability ($95K–$110K) unless volume surges.
Q: How do ETFs impact Bitcoin’s price?
A: ETFs drive institutional demand, creating upward pressure.
Q: What’s the biggest hurdle for Bitcoin’s recovery?
A: Low trading volume—market needs renewed participation.
Key takeaway: While short-term volatility persists, Bitcoin’s 2025 bull case remains intact, backed by macro trends and ETF inflows. Investors should monitor trading volume shifts and policy developments.
👉 Bitcoin ETF inflows hit record highs—here’s why
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