- Bitcoin has been in sideways action for over 217 days.
- Short-Term Holders (STH) may react sharply to price fluctuations soon.
- Bitcoin could hit $80K by the end of 2024 if certain conditions align.
Bitcoin has been in a tight sideways range for more than 217 days, something rarely seen in a bull market, according to expert observations. As long as the price stays above $60,000, an upward move remains likely, with potential for explosive breakouts after such extended consolidation periods. However, a breakdown below $60K could lead to a retest of long-term support levels.
The $60K level turned into the mark of a significant psychological barrier. Any meaningful move from here would set the stage for a shift in momentum in the markets. This is warned to be a time when traders must be cautious and well prepared either way for the two eventualities since history has shown that long sideways movements are mostly followed by violent breakouts.
Bitcoin Short-Term Holders’ Realized Share Drops: Market Volatility Ahead?
In the meantime, data from CryptoQuant brings forth an interesting trend in Bitcoin’s STHs. From 55%, their realized share has contracted to 40% over the last three months. In essence, once the realized prices for holders in a range of one week to six months begin to bunch up, STHs become increasingly susceptible to price action. Such increased volatility could lead to frantic reactions within the market, especially if some key price levels are breached.
Of the critical levels to be considered, the more important one is at $62.7K. Bitcoin is currently trading close to $61.8K, and for short-term momentum to break into bullishness and signify the change in market structure, the price needs to consistently go above $63,000 with good trading volume.
Bitcoin’s Potential to Hit $80K in Q4 2024
Looking ahead, as reported by TronWeekly, Bitwise’s Chief Investment Officer Matt Hougan is optimistic about Bitcoin’s outlook for the rest of 2024. He believes that Bitcoin can jump as high as $80,000 before the year wraps up, influenced by three main factors: U.S. election outcomes, anticipated Federal Reserve rate cuts, and economic stimulus issues by China.
However, he does make a caution that Bitcoin needs to sidestep some significant negative events, like major hacks or lawsuits for instance. If that is the case, then the cryptocurrency stands on a path to reaching new all-time highs in Q4.
Related Reading | Crypto VC Fund Faces $36 Million Loss in Phishing Attack
