Bitcoin, the world’s largest cryptocurrency by market cap, has struggled to gain traction this month. With its price consolidating between $57,000 and $60,000, leading analysts to question whether Bitcoin is nearing the end of this consolidation phase or if further price corrections are ahead.
Bitcoin: Consolidation or Breakout?
Legendary crypto analyst Peter Brandt has highlighted the formation of a megaphone or broadening triangle pattern on Bitcoin’s price charts. This pattern is evident on both weekly and daily charts as Bitcoin remains in its current consolidation phase.
According to Brandt, Bitcoin’s megaphone pattern shows the price testing both ends of its range. The upper boundary of this pattern is near the all-time high (ATH) of $73,835, while the lower boundary has found support between $52,000 and $55,000. This suggests that Bitcoin is experiencing significant volatility as it navigates these key levels.
Further into the analysis Brandt points out that Bitcoin has not yet broken above the $73,835 resistance or fallen below the $52,500-$49,000 support. This indicates that the market is still in a consolidation phase, with no clear direction established for its next major move.
Is Consolidation Nearing End?
Meanwhile, CryptoQuant analyst believes Bitcoin might be close to finishing its market consolidation phase. However, recent data shows increased demand for Bitcoin, with a rise in daily token transfer volume from $650,000 to $765,000 as Bitcoin approached $60,000.
Although this increase in volume was due to some panic selling, but the market’s stability despite this suggests strong interest in Bitcoin.
Usually, the end of consolidation means smaller price changes and less volatility as investors agree on the asset’s value. For Bitcoin, this could mean the current price range is setting a new lower limit, which might help support future price growth.
Bitcoin Price Movement
As of now, Bitcoin is currently trading at $59,436, reflecting a drop of 2.2% in the past 24 hours. Bitcoin’s market capitalization has fallen to $1.176 trillion, while its dominance remains at 55.81%.
However, Bitcoin continues to struggle to maintain the crucial $60,000 level, which has been a key focus for traders recently. Since July 22, Bitcoin has been fluctuating within a 40% range, moving between a low of $49,842 and a high of $69,799.
If Bitcoin manages to break above the $60,000 mark, it could potentially rise towards $61,000. However, if it fails to maintain this level, the price might decline further toward the $54,000 range in the short term.
