Bitcoin’s (BTC) price has experienced significant consolidation since it broke above the $90,000 mark for the first time on November 19. Currently, the price is oscillating within a range of $108,268 to $91,000. However, recent analysis suggests that this period of consolidation may be approaching its conclusion, potentially leading to a massive rebound.
As per the analysis from crypto experts, Rekt Capital has stated that the current price action indicates a final stage of Bitcoin’s price discovery correction. The recent bullish close above $91,000 on January 14 is seen as a turning point. Rekt Capital noted that historically, Bitcoin’s corrections have ranged between 30% and 35%, lasting around three to four weeks. With the current 4-week retracement seeming shallower by comparison, experts suggest that it may be nearing a bottom.
Another analyst, Trader Tardigrade, believes Bitcoin’s consolidation could persist a few more days before reaching what he terms the “final capitulation” level. Drawing parallels to previous price movements, he anticipates that once this capitulation occurs, a significant upward movement could follow.
In terms of volatility indicators, the **Bollinger Bands** have provided additional insight into potential price movements. The tightening conditions observed on the three-day timeframe suggest that the bottom for Bitcoin’s price might be nearby. Historically, periods of tight Bollinger Bands have preceded notable price surges, with past examples showing increases of over 100%.
Looking ahead, much attention is directed towards January 20, the date of the upcoming presidential inauguration of Donald Trump. Investors are hopeful that Trump’s return to the presidency could usher in supportive policies for cryptocurrencies, with reports indicating he may issue favorable crypto regulations on his first day back. This has driven a bullish sentiment in the market, reflected in the recent uptick in Bitcoin call options for prices exceeding $100,000.
In summary, indicators and expert analyses suggest that Bitcoin may soon break out of its current consolidation phase, paving the way for a significant price increase. Investors are advised to stay informed and consider the underlying factors influencing Bitcoin’s market trajectory in the coming days.
Note: This article is for informational purposes only and does not constitute investment advice. All investment decisions come with risks, and individuals should conduct their own research.
