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Bitcoin has found itself caught within an incredibly tight trading range over the several days, which is a major change from the massive volatility it has been incurring over the past month.
This bout of consolidation, however, may prove to be short-lived, as analysts are now noting that they expect it to be followed by a massive price movement that could determine how BTC trends going into the new year.
At the time of writing, Bitcoin is trading up just over 1% at its current price of $7,380, which marks a slight climb from its daily lows of $7,240 and a slight decline from its daily highs of just over $7,400.
These two prices appear to be the lower and upper boundaries of the cryptocurrency’s current trading range, which has held strong since the start of December.
Bitcoin has been caught in several periods of sideways trading like this in the past, with some extending for multiple weeks. One similarity amongst all these consolidation phases is that they often end with a massive movement, in one direction or another.
Josh Rager, a popular cryptocurrency analyst on Twitter, explained in a recent tweet that he believes the trading range that BTC is currently caught within will result in a massive movement.
“$BTC is currently compressing and the range is getting smaller. Not focused on trading small moves here. The focus now is being on the right side of the next multi-hundred dollar move,” he explained.
As for where analysts expect this movement to lead BTC, HornHairs, another popular cryptocurrency analyst on Twitter, explained that he believes the strong support BTC has found at $7,240 could bolster its near-term price action and send it surging towards $7,600.
“Based on the above thesis I’m willing to punt a long: 1H breaker setup with a stop below the level that has been defended ~$7240 and target at monthly open,” he explained, referencing a chart that shows the $7,600 price target,” he said.
If Bitcoin does break above the upper-boundary of its current trading range, the cryptocurrency may be positioned for significantly further gains, as it could signal that a bullish trend shift is imminent.
Original article posted on the EthereumWorldNews.com site, by Cole Petersen.
