Bitcoin Consolidation Continues: Analysts Predict Volatility or Stability
Bitcoin fell to a monthly low of $65,000 on June 14 and is currently down around 5% since the same time last week. However, zooming out to view the bigger picture shows that the asset is still consolidating where it has been since early March.
- Analyst James Check noted that Bitcoin has been unusually quiet recently, with a 30-day price range separated by just 8.3%.
- He presented two possible outcomes: Bitcoin continues to remain stable or volatility is on the horizon.
Bitcoin’s Current Situation
Furthermore, the Bitcoin sell-side risk ratio, used to gauge volatility, is currently low, suggesting most profit and loss have been realized. This indicates that the market needs movement to stimulate further spending.
The ‘Choppiness Index,’ serving as a fuel gauge for BTC, shows readiness for a weekly trend but still requires monthly rest.
- Analysts predict short-term volatility but expect longer-term trend continuation waiting for market movement.
- Bitcoin is in a phase of ‘chop-solidation,’ featuring small price fluctuations to shake out impatient holders.
Fellow analyst ‘Rekt Capital’ mentioned that Bitcoin struggling to break out benefits the overall cycle by aligning with historical halving cycles, potentially leading to a normal bull run.
This consolidation phase may continue for another 3 months according to historical trends.
Predictions and Observations
Samson Mow hinted at a looming significant market movement with Bitcoin’s coil tightly compressed, foreseeing a major candle being formed.
Will Clemente compared the current consolidation period with a similar phase from the previous year, hinting at a potential repeat of the summer consolidation fractal.
- Analysts are anticipating either a strong bounce towards $70,000 or a deep capitulation to $60,000-$62,000.
- Bitcoin is currently trading at $66,200, down 1.2% for the day, and 10% below its mid-March all-time high.
Bitcoin’s Future Trajectory
Analyst Jacob Canfield outlined two possible scenarios for Bitcoin’s price movement. It could bounce back towards $70,000 after hovering around $66,000 or experience a significant drop to $60,000-$62,000 before rebounding.
- Bitcoin remains range-bound, with a lower boundary near $60,000 based on previous dips in early May.
Conclusion: Brace for Potential Volatility or Stability
As a crypto investor, it is essential to monitor Bitcoin’s consolidating phase and be prepared for potential market movements. Analysts are predicting either a stable period or the onset of high volatility in the near future.
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