There have been many optimistic Bitcoin traders hoping for an impending breakout in a bull market. However, one analyst has said that it may be until the end of 2020 that cryptocurrency markets enter a full-blown bull phase.
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Bitcoin may have more months of consolidation
There is no doubt that Bitcoin’s volatility has tightened in recent months. Despite the decline in March, on a macro scale, the leading cryptocurrency is indeed in consolidation as it aims to explode.
According to an analyst, the width of the Bollinger Bands indicates that further consolidation is likely. Bollinger Bands is a technical indicator that shows the level of volatility in a market over time.
“Room for further shrinkage in Bollinger bandwidth. Fourth quarter takeoff? He wrote, referencing how the Bollinger Bands are not yet at the level seen at the start of the 2016 bull market at $ 20,000.
Macro Bitcoin volatility analysis by trader "Dave the Wave" (@Davthewave on Twitter). Chart from TradingView.com
The analyst who shared the chart above isn’t the only one who expects Bitcoin consolidation to persist for months.
According to the International Business Times, Tone Vays believes that BTC may be stuck in a range until the end of 2020. Tone Vays is a leading Bitcoin researcher and analyst, former JP Morgan Chase Vice President and Wall Street trader.
Vays said in a video analysis of the crypto market:
“As I’ve been saying for months, I have no reason to stray from my prediction earlier this year that Bitcoin will be stuck between $ 6,000 and $ 10,000 for most of this year.”
This was attributed to his outlook on the S&P 500, which he hopes to cut or potentially trade lower.
Where will BTC go in the short term?
With many waiting for Bitcoin to consolidate, what’s next for the short-term asset?
A correction is the best guess of many.
According to previous NewsBTC reports, the same analyst who published the chart above expects a 25% drop in the crypto market.
BTC’s drop by 25% from current prices would result in a change to $ 7,000. And Ethereum doing something similar would imply a drop in the region of $ 175.
Bitcoin price chart shared by pseudonymous crypto trader Dave the Wave (@Davthewave on Twitter). Charts from TradingView.com
There is another chart from another analyst indicating that since Bitcoin rejected ~ $ 10,000, it is likely to move to $ 5,000.
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Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com It May Take Bitcoin Until Q4 2020 to Break Into a Bull Market: Analyst
