Bitcoin’s price has been caught in an incredibly tight consolidation phase over the past few weeks, during which multiple trend catalysts have emerged showing both a bearish and an upward trend, but none have provided BTC with significant momentum.
Analysts now point out that this situation will not last long, and many expect a big move in the coming days or weeks. A trader also believes that the next move can set the trend over a long-term period.
Just a few weeks ago, lawsuit reports on the CFTC’s BitMEX founders surfaced. This shook the market for a short time, causing Bitcoin to jump from $ 10,900 to $ 10,400.
Since then it has compensated for the vast majority of these losses.
Yesterday, the public company Square’s purchase of $ 50 million worth of BTC to hold as a reserve asset only raised the price of the cryptocurrency by about 1%.
Despite the intensity of this horizontal trade, one analyst believes a trend that defines the movement is imminent.
Bitcoin Price Stuck In Tight Trading Range
At the time of writing, Bitcoin is trading at $ 10,875. This marks a good uptrend after the most recent low of $ 10,630, but not big enough to nullify the cryptocurrency’s consolidation phase.
The macro consolidation phase between $ 10,200 and $ 11,200 is still underway, and which of these levels breaks first will likely determine where BTC trends are in the near term.
Discussions on the future of a potential second incentive package in the US could affect Bitcoin’s trend in the near term.
Analyst: BTC Volatility Coming Soon
A popular analyst shared his thoughts on when Bitcoin could make a big move, noting that he was watching a trend-setting break or collapse ahead of this weekend.
“I think that given this prolonged squeeze situation, BTC will have a big leap ahead of the weekend. Either way, I doubt we’ll retest. ”