Bitcoin's price has remained stagnant in a narrow trading range for over ten days, leading to speculation among market participants about a potential breakout. The growing interest in alternative cryptocurrencies has influenced Bitcoin's trading volume, resulting in a flat and horizontal trend over the past week. After pulling back from levels above $71,000, Bitcoin has lost its bullish momentum. Investors anticipate the continuation of this flat phase in the short term, although significant changes in market dynamics could affect Bitcoin's price in the long run.

Short-Term Prediction for Bitcoin

Currently, major cryptocurrencies, including Bitcoin, are likely to exhibit a slow movement throughout the month, indicating a recent shift in liquidity towards trending alternative coins. Analysts suggest that profits generated from these altcoins may drive liquidity back to Bitcoin. This alteration in liquidity flow could potentially occur in the initial period of the latter half of the year, causing a potential shift in Bitcoin's pricing pattern.

By examining Bitcoin's price history, it appears to be heading towards a new all-time high in the early weeks of 2025. During the previous bull market, Bitcoin's price surged in a parabolic trend, reflecting the present market situation.

The Relative Strength Index (RSI) suggests a strategic rally following multiple recovery phases and is now preparing for a downward trend. As per this evaluation, Bitcoin's price could experience a drop in the short term, but with significant shifts in market dynamics and an RSI reversal, a subsequent surge is plausible.

Commencing a New Bull Run Towards $85,000

Currently, Bitcoin's price is consolidating, laying the groundwork for a significant upswing. Analysts anticipate this consolidation phase to continue for a few more months, after which the price could rise along a firm parabolic curve. Conversely, an increase in selling pressure might cause Bitcoin's price to dip below the $60,000 support level. Such a decrease could attract bullish interest to the market, initiating a new bullish phase aiming towards $85,000.

The upcoming weeks until the mid-year candle closure are crucial for Bitcoin. The closing levels during this period are pivotal in determining the subsequent direction for the leading cryptocurrency.