Bitcoin Consolidation Amid Macroeconomic Pressure, Altcoin Struggles | Flash news details

According to Michael van de Poppe’s recent analysis, the price of Bitcoin continues to consolidate as of January 13, 2025. This consolidation comes in the context of difficult macroeconomic conditions, in particular rising yields and a strengthening US dollar. Bitcoin price ranged between $35,000 to $36,000 over the past week, maintaining a narrow range without major breakout or breakdown movements. This price behavior indicates a period of accumulation, where traders are not buying or selling aggressively, waiting for clearer market signals.

The macroeconomic climate is putting pressure on the cryptocurrency market, affecting Bitcoin and especially altcoins. The strong dollar, which has reached a new high for the year, is impacting global liquidity flows into riskier assets such as cryptocurrencies. As a result, altcoins have performed poorly, with the price of Ethereum falling 5% over the past week, closing at around $2,400. This downward trend is reflected in smaller market cap currencies, many of which are suffering double-digit percentage losses. These movements highlight the sensitivity of altcoin markets to broader economic conditions and Bitcoin’s dominance as a more stable crypto asset during turbulent times.

Technical indicators also show current market dynamics. Bitcoin’s Relative Strength Index (RSI) is hovering around the 50 level, indicating neutral market sentiment. Meanwhile, the Moving Average Convergence Divergence (MACD) is showing signs of a potential bullish crossover, although confirmation will require sustained upward momentum. Trading volumes were modest, with Bitcoin’s average 24-hour trading volume at around $15 billion, just below the monthly average. This lower trading activity reflects a cautious market attitude, as traders assess the potential impact of external economic factors. Overall, the market response is likely to depend on further macroeconomic developments and their impact on investor confidence.