Since Bitcoin (BTC) surpassed the $90,000 mark for the first time on November 19, it has been consolidating within a range between $91,500 and $106,500. While this sideways price action may persist in the short term, several technical and on-chain metrics suggest that Bitcoin’s consolidation phase could soon come to an end, potentially setting the stage for a significant breakout.
Despite BTC briefly testing $101,000 on February 3, it failed to maintain support above that level, signaling that further consolidation could be in the cards. According to renowned crypto analyst Rekt Capital, Bitcoin’s daily close at $101,000 couldn’t be turned into new support, hinting at continued range-bound trading. Additionally, independent analyst Arjantit believes Bitcoin’s consolidation cycle could extend until the end of February. With a 15-week rally that saw Bitcoin surge by over 105%, Arjantit notes that as long as Bitcoin stays above $90,000, the daily structure remains strong. A dip below that level, however, could present a “buy opportunity.”
#ВТС
— Rekt capital (@Alinestev) February 5, 2025
Bitcoin revisited the $101k level (black)
In fact, Bitcoin even Daily Closed above it, but failed the subsequent post-breakout retest of it into new support
BTC is probably going to consolidate between $98300 and $101000 for the time being$BTC pic.twitter.com/2rVBVoTh0J
Bitcoin’s rally momentum is still intact, but demand remains relatively subdued compared to previous market cycles. Glassnode, in its latest Week On Chain report, points out that new demand for Bitcoin is lower than during the peaks of previous cycles. At the $109,000 all-time high, new demand stands at just 23%, with larger entities dominating the market. Google Trends data also shows a decline in social interest around Bitcoin compared to the 2021 bull run. To end the current consolidation phase, sustained interest from retail investors may be necessary.
On a more technical front, Bitcoin’s Bollinger Bands indicator shows tightening conditions, a sign that a breakout could be imminent. The daily Bollinger Bandwidth is extremely oversold, signaling a potential surge. Historical data suggests that when the bands tighten, Bitcoin often experiences substantial price rallies. If history repeats itself, Bitcoin could break out of its current range in the coming days or weeks, possibly pushing towards new price highs.
Also Read: Bitcoin Price Eyes Breakout: Can BTC Surge Past $102,350 Resistance?
As Bitcoin continues to consolidate, the next few weeks could be crucial in determining its future trajectory. Market participants will be watching closely for signs of increased demand or a breakout that could signal the next phase of Bitcoin’s bull run.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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