- Bitcoin has been stuck within an extended period of limited range trading in recent times, ranging from $ 9,000 to $ 10,000 for more than a month
- Crypto seems to be well positioned to see further consolidation as there are no clear catalysts that can drive a move in either direction.
- There is a pricing model that seems to indicate that Bitcoin could be just a month away from entering its next bullish phase
- The model also shows that BTC was positioned to enter a bull market earlier this year until the Black Swan pandemic delayed this.
Bitcoin and the aggregate cryptocurrency market have continued to shift sideways. BTC has been showing some signs of weakness in recent times as it hovers around the lower limit of this trading range.
The trends below will largely be guided by which side of the range breaks first, and their consecutive rejections at $ 10,000 seem to suggest an impending downside break.
A recently released pricing model seems to suggest that the benchmark digital asset remains macro bullish.
The prominent chain analyst who introduced the model points out that next month could be very positive for BTC.
It also notes that the longer it consolidates around its current price, the greater the next move.
Bitcoin consolidation phase persists as model predicts impending setback
As of writing, Bitcoin is trading at a marginal price of $ 9,140. This is around the price level at which it has been trading for the past few days.
Because sellers have been unable to force it below $ 9,000, its medium-term outlook appears to remain relatively strong.
Despite showing some signs of overt weakness, a price model recently released by analyst Willy Woo seems to indicate that it only has another month of trading with limits before its price enters its next bullish cycle.
He spoke about this in a recent tweet, saying:
“This is a new model that I’m working on, choose the start of the exponential bullfights. 1) Bitcoin was preparing for a bull run until the white swan COVID killed the party. 2) This model suggests that we are close to another bull run. Maybe another month.
Image Courtesy of Willy Woo
BTC could be “liquidation” for a massive move
Woo also explains that the longer Bitcoin is traded sideways as investors accumulate, the higher its next price spike will be.
“The later this bull market ends, the higher the maximum price (Top Cap model). A long band of lateral accumulation is ultimately a good thing. ”
Image Courtesy of Willy Woo
This means that the relentless side-trading fight seen over the past month may prove beneficial to Bitcoin’s future price action.
Featured image from Shutterstock.
