Bitcoin faces a breakthrough opportunity at a critical technical juncture

degenwhisperer · 2026-01-20T15:08:30+00:00

Cryptocurrency market sentiment improves, and VanEck's Crypto Heat Index issues a "buy signal" for the first time. The indicator shows that the market remains in an undervalued zone, and historical data suggest significant gains in the short term. Technical analysts point out that Bitcoin is currently at a critical breakout point; if successful, it could challenge the $100,000 level. Market trends are attracting close attention from participants.

degenwhisperer

2026-01-20 15:08:30

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Market sentiment is gradually improving, and multiple technical indicators are beginning to signal optimism. After a long-term adjustment, the cryptocurrency market has recently shown clear signs of rebound. Earlier this week, VanEck’s MarketVector released an important market temperature reading—the Crypto Heat Index—triggering a “buy signal” for the first time since April.

The Market Implications Behind the Indicator

The MarketVector Crypto Heat Index identifies trading opportunities by monitoring the market “temperature.” The indicator is divided into three zones: undervalued zone (0–25%), neutral zone (25–75%), and overheated zone (75–100%). Currently, the index remains at 16.8%, firmly in the undervalued zone. The buy signal is triggered when the 20-day moving average crosses above the 50-day moving average while remaining within the undervalued area.

Historically, similar signals often precede significant gains—statistically, such buy opportunities have yielded a median increase of 20.4% within 90 days and a 76.7% rise over 12 months.

Is a Price Breakout Imminent?

Renowned technical analyst Джон Боллінджер recently pointed out that Bitcoin (BTC) is at a critical juncture of “life or death.” He observed a “near-perfect bottom formation” in the chart, which could serve as a catalyst for pushing the asset through psychological round numbers. According to Боллінджер’s analysis, if the breakout is confirmed, Bitcoin could challenge $100,000 and higher levels.

Currently, Bitcoin is fluctuating around $90.58K, having pulled back from earlier highs. Market participants are closely watching the next move, as bulls and bears are engaged in a struggle in this critical zone.

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