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Is Bitcoin Repeating January? Why This Pullback Feels Different

/2025.08.04 23:45:29
While Bitcoins recent price action mirrors January’s reversal, key differences suggest this isnt a repeat. With rate cuts expected and strong support at $110K, a bounce looks more likely than a deeper correction. Liquidity points to upside potential.

$BTC Sunday update:

Is January's Price Action repeating now?

The reversal PA was almost identical at the highs since it's a common pattern for a pullback after reducing momentum.

However, the current situation is very different and it's unlikely PA repeats further:

In this stage of the market, with rate cuts very likely coming in September, this looks like a pullback before continuation.

In January we saw the 1D50EMA becoming resistance - I doubt we see that now.

I think a deviation below it to $110k support should likely hold well.

Liquidation data:

In the big picture, the liquidity is to the upside, especially in that $119k-120k cluster zone- although the main liquidation levels are at $118.5k and $116.2k.

Dropping to $110k would only increase the delta liquidations and add fuel to a short squeeze.

Overall, in my opinion, it's very likely that we see a strong bounce either from here (the 1D50EMA), or from $110k if it comes.

And it's very unlikely to continue repeating January's PA and have another 20% correction since the whole market structure and context has changed.

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