10x Research: Undercurrents in the Market, BTC and ETH May Face Trend Reversal

BlockBeats News, December 29th, 10x Research published an article stating that the crypto market is heading into the new year with subdued activity, but the derivatives market is sending a markedly different signal. Volatility is contracting, funding rates are gradually increasing, leverage remains high, even as trading volumes and participation decline. ETF flows, stablecoin transaction activity, and futures positions are no longer in sync, leading to a seemingly calm surface market with an undercurrent of turmoil.

The downward trend of Bitcoin continues to persist but is likely to turn bullish in January. Bitcoin's Relative Strength Index (RSI) is at 43%, indicating a bullish signal, while the Stochastic indicator is at 30%, indicating a bearish signal. An RSI above 70% and Stochastic above 90% may herald a bearish market, whereas an RSI below 30% and Stochastic below 10% may signal a reversal to an uptrend. Bitcoin is 4.5% away from triggering a trend reversal, with the current trend being bearish. The key bullish/bearish price level in the short term is $88,421, with the primary bullish/bearish level at $98,759.

Ethereum may also see a shift to an uptrend in January. Ethereum's Relative Strength Index (RSI) stands at 44%, showing a bullish signal, while the Stochastics indicator is at 23%, indicating a bearish signal. An RSI above 70% and Stochastics above 90% may suggest a bearish market, while an RSI below 30% and Stochastics below 10% could indicate a reversal to an uptrend. Ethereum is only 5% away from triggering a trend reversal, with the current trend being bearish. The key bullish/bearish price level in the short term is $2,991, with the primary bullish/bearish level at $3,363.