Bitcoin’s price has been bouncing around lately, making it hard to predict what’s next. Let’s dive into what’s happening.
Sideways Trading: A Period of Consolidation?
After a dip a few days ago, Bitcoin briefly rallied from around $93,300 to $96,300. But it’s still stuck in a relatively tight trading range. This sideways movement could be a period of consolidation before a big move up or down.
A breakout above the current range could send Bitcoin towards $100,000 and beyond. Conversely, a break below could drag it down to around $92,000. At the time of writing, Bitcoin was trading at about $96,540, a small gain for the day and a slightly larger gain over the past week. This tight trading range is confirmed by multiple sources.
Both IC News and Glassnode, well-known crypto data platforms, have noted this consolidation phase. Glassnode points out that Bitcoin is trading between $93,000 and $97,000, suggesting a cooling-off period after recent volatility. They also mention that derivatives activity and market inflows are weakening. Interestingly, current short-term holder accumulation patterns resemble those seen in May 2021, which could lead to a price rebound and even new all-time highs in the coming months.
A Potential Dip on the Horizon?
Despite the recent small upward movement, there are signs suggesting Bitcoin might fall further. A Glassnode analyst noted that each recent bounce has been weaker than the last, with the bounce from $93,500 to $95,000 lacking strong buying volume. A key indicator, the Risk Index, is also flashing a warning sign of downward pressure. Until Bitcoin reclaims the $97,000 to $98,500 range, the analyst believes the $92,000 level is a critical support level to watch.
