10x Research: Market Under Currents Surge, BTC and ETH May Experience Trend Reversal

On December 29th, 10x Research stated that the crypto market entered the new year with subdued activity, but derivatives positions are quietly signaling a completely different story. Volatility is narrowing, capital flows are gradually increasing, and leverage remains high, even as trading volume and participation continue to decline. ETF capital flows, stablecoin trading activity, and futures positions are no longer aligned, leading to a seemingly calm market on the surface but with underlying turbulent currents. The downtrend in Bitcoin still exists but is likely to turn upward in January. Bitcoin’s Relative Strength Index (RSI) is at 43%, indicating a bullish signal; while the Stochastics indicator is at 30%, indicating a bearish signal. An RSI above 70% and Stochastics above 90% may suggest a bearish trend, whereas an RSI below 30% and Stochastics below 10% may indicate a trend reversal to the upside. Bitcoin is 4.5% away from triggering a trend reversal; the current trend is bearish. The key short-term support/resistance levels are $88,421, and the main bullish/bearish levels are $98,759. Ethereum may also see a trend reversal to the upside in January. Ethereum’s RSI( is at 44%, signaling a bullish outlook; while the Stochastics) is at 23%, signaling a bearish outlook. An RSI above 70% and Stochastics above 90% may indicate a bearish trend, while an RSI below 30% and Stochastics below 10% may suggest a reversal to an upward trend. Ethereum is 5% away from triggering a trend reversal; the current trend is bearish. The key short-term support/resistance levels are $2,991, and the main bullish/bearish levels are $3,363.