The 3 Key Reasons January Was a Turning Point for Bitcoin

Jakarta, Pintu News – Bitcoin’s (BTC) consolidation phase often feels uncomfortable for traders. It tests their patience and confidence. However, this period can also be an opportunity for investors who apply disciplined capital management.

A number of signals suggest that January could be an important moment where Bitcoin enters a crucial consolidation phase before experiencing a recovery. Here are 3 signals that suggest January could be Bitcoin’s local botom point, according to the BeInCrypto page.

Bitcoin Approaches the Optimal DCA Zone

Based on technical, on-chain, and exchange activity data, analysts believe that some positive signals for a long-term recovery are beginning to emerge.

Read also: Bitcoin Price Predicted to Fall to $62,000? Here’s Peter Brandt’s Analysis

First, technical data shows that Bitcoin is approaching the optimal DCA (Dollar Cost Averaging) zone based on moving averages (MA).

According to Alphractal’s on-chain analysis platform, the ideal long-term accumulation zone usually forms when the price of BTC is below all daily moving averages, ranging from the 7-day MA to the 720-day MA. This creates a “safe zone” where the price is considered to be below fair value when compared to the long-term trend.

Currently, Bitcoin price has broken below most of its moving averages since last November. Only the MA720 is still holding, which is around $86,000.

“Bitcoin is getting closer to one of the best zones to implement the DCA strategy. Historically, these zones are ideal areas for long-term accumulation. For this to happen, BTC needs to drop below $86,000,” Alphractal said.

Bitcoin’s fall below $86,000 does not necessarily signify an immediate bottom was reached, but historical data shows that the period when BTC prices break from MA7 to MA720 usually lasts for several months.

Bitcoin Network at its Lowest Point

Secondly, on-chain data shows that Bitcoin network growth is at its lowest point in years. While this may seem negative, historical patterns show that such conditions often precede a recovery phase.

According to Swissblock, an investment fund and market intelligence provider, weak network activity coupled with low liquidity suggests that Bitcoin is in an accumulation or consolidation phase before the next big move.

“Network growth is at its lowest point since 2022, while liquidity continues to decline. Back in 2022, similar conditions marked Bitcoin’s consolidation phase before network growth began to recover, although liquidity remained low and prices bottomed out,” Swissblock explained.

Swissblock also added that new signs of adoption are still needed. If this scenario materializes, a 2022-like rally could push Bitcoin to a new record high price this year.

Read also: Bitcoin Price Plunges to $89,000 Today: Is BTC’s Bull Run Over?

Whale Selling Pressure Decreases Significantly

Third, exchange data shows that selling pressure from whales (large BTC holders) has decreased significantly in the past month. This change creates more favorable conditions for price consolidation and recovery.

Based on CryptoQuant data, BTC flows from whales to exchanges-especially Binance-have sharply decreased.

Specifically, BTC inflows from large transactions (100 to more than 10,000 BTC) fell from nearly $8 billion per month at the end of November 2025 to around $2.74 billion today. This change in behavior significantly reduces supply on the sell-side, supports price stability, and reinforces the potential for recovery.

The combination of technical signals (price is below major moving averages), on-chain data (low network growth), and exchange data (decreased selling pressure from whales) suggests that Bitcoin is entering a consolidation phase that is ideal for forming a local bottom.

However, the above data is not enough to accurately determine the bottom. In addition, there are still a number of external uncertainties that have not been taken into account, such as the potential return of tariff pressures due to geopolitical tensions as well as the market impact of the upcoming Federal Reserve leadership change.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities are subject to high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying and selling Bitcoin and other crypto asset investments are the responsibility of the reader.

Reference:

• BeInCrypto. January May Be an Ideal Phase to Buy BTC. Accessed on January 21, 2026