10x Research: Market Dynamics Shift, BTC and ETH May See Trend Reversal

According to 10x Research, the crypto market has entered the new year with low activity, but derivatives positions are sending a different signal. Volatility is narrowing, capital inflows are increasing, leverage remains high, despite declining trading volume and participation. ETF flows, stablecoin trading, and futures positions are no longer in sync, leading to surface calmness but underlying turbulence. Bitcoin's downward trend persists, but a reversal to an upward trend may occur in January. Bitcoin's Relative Strength Index (RSI) is at 43%, indicating a bullish signal, while the Stochastic indicator is at 30%, showing a bearish signal. RSI above 70% and Stochastic above 90% may indicate a bearish market, while RSI below 30% and Stochastic below 10% may signal a reversal to an upward trend. Bitcoin is 4.5% away from triggering a trend reversal, with the current trend being bearish. The key bullish/bearish price levels in the short term are $88,421 and the main levels are $98,759. Ethereum may also see a trend reversal to the upside in January. Ethereum's RSI is at 44%, signaling bullish, while Stochastics is at 23%, indicating bearish. RSI above 70% and Stochastics above 90% may signal a bearish market, while RSI below 30% and Stochastics below 10% may indicate a reversal to an upward trend. Ethereum is 5% away from triggering a trend reversal, with the current trend being bearish. The key bullish/bearish price levels in the short term are $2,991 and the main levels are $3,363.

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