10x Research: Undercurrents in the Market, BTC and ETH May Be Facing a Trend Reversal

On December 29, 10x Research released an article noting the crypto market is heading into the new year with muted activity—but the derivatives market is quietly sending a sharply different signal. Volatility is contracting, funding flows are gradually picking up, leverage remains elevated, even as trading volumes and participation decline. ETF fund flows, stablecoin trading activity, and futures positions are no longer aligned, creating a seemingly calm market surface that hides turbulent undercurrents. Bitcoin’s downtrend still persists but is likely to reverse upward in January. Its Relative Strength Index (RSI) stands at 43% (a bullish signal), while the Stochastic Oscillator is at 30% (a bearish signal). An RSI above 70% and Stochastic Oscillator above 90% may signal a bearish market; an RSI below 30% and Stochastic Oscillator below 10% may indicate an upward reversal. Bitcoin is 4.5% away from triggering a trend reversal, with the current trend remaining bearish. The key short-term bull/bear price level is $88,421, and the primary bull/bear price is $98,759. Ethereum may also see a trend reversal to the upside in January. Its RSI is at 44% (bullish), while the Stochastic Oscillator is at 23% (bearish). An RSI above 70% and Stochastic Oscillator above 90% may suggest a bearish market; an RSI below 30% and Stochastic Oscillator below 10% may indicate an upward reversal. Ethereum is only 5% away from triggering a trend reversal, with the current trend bearish. The key short-term bull/bear price level is $2,991, and the main bull/bear price is $3,363.