Bitcoin’s price has been bouncing around lately. After a dip in July, it saw a small increase, but then stalled. However, one analyst thinks this might be setting up a big move.
A Volume Shelf and the Golden Ratio
Analyst Donald Dean spotted something interesting on the Bitcoin chart: a “volume shelf.” This is a price level where a lot of trading happened in the past. These shelves often act as strong support or resistance because many people bought or sold at that price.
Dean sees a volume shelf around $116,000 – $118,000. He believes if Bitcoin breaks above this, it could trigger a significant price increase. His target? Around $131,000! That’s based on a technical analysis technique called the Fibonacci extension, specifically the “golden ratio” (1.618). This would be a roughly 13% jump from current prices.
Current Market Conditions
Right now, Bitcoin is trading just below $117,000. Trading volume is down, but overall market sentiment is still bullish (positive). While short-term price predictions vary, most analysts expect Bitcoin to stay within a relatively narrow range for the next few months.
