- The Bitcoin market remains range-bound, fluctuating between support and resistance levels with a 6.8% drop in the past week, now at $97,150.
- Testing resistance at $97,521 and $98,430, Bitcoin may see an upward shift if it breaks through, but failure could lead to further decline.
- Bitcoin’s ongoing consolidation near $100,000 could lead to growth if it stays above $85,000 in the long run.
Bitcoin remains in a prolonged trading range-bound patterns characterized by price fluctuations in between levels of support and resistance. As of press time, the cryptocurrency has fallen by over 6.80% within a week, with the current value set at $97,190. This pattern shows that Bitcoin is still range bound without a distinct direction.
Source: TradingView
Bitcoin’s Breakout Potential
Bitcoin is currently at the point near the lower border of a range and is approaching resistance area. The first resistance level is at $97,521 and the second one is $98,430. If this cryptocurrency goes past this range then this is an indication of an upward movement of the price. On the other hand, if BTC could not go above this level it may decrease in the short run again.
Daan Crypto Trades provided further analysis of the state of Bitcoin within its range. He pointed out that the BTC is right at a high volume node which makes it stay right in the middle of the current range. This that mean that there is no compelling action in one form or the other that can foretell the next action in the market by traders.
Bitcoin has been fluctuating around ~$100,000 mark for approximately two and half months. This phase of consolidation is the fifth or possibly the sixth in the current cycle of such events. In the past, such patterns of consolations have been followed by upward price change to the market. Daan Crypto Trades noted that the higher time frame indicates a bearish trend for BTC so long as the price stays above the $85,000.
Bitcoin’s Next Big Move
Although the current situation of the market indicates lack of direction for further rise, there are several factors that may propel the future growth of Bitcoin. Daan pointed out that although at the moment we cannot observe that there are indications of market froth, previous experiences have indicated that consolidation led to higher prices. The overall market picture is quite good as BTC is above $85,000.
The price fluctuations are closely monitored for indications of a breakout by the investors and traders. Potential targets of a technical move above the range mean intra resistance are critical and can fuel additional price movement. Still, if this formation fails to ignite a advance through the above marks, more sideways trading or correction to the downside might occur in the short term.
For the Bitcoin market, the next days might be vital as it continues its consolidation period to uncover the present trend. The most crucial level remains the $98,000 while the $85,000 bottom is seen as the support level. Whether it will continue to rally higher or whether it will stall and face more issues like in the past remains to be seen in time.
