Bitcoin is preparing for a massive move into all-time highs, with analysts speculating that this recent consolidation is merely the calm before the storm. Despite uncertainty in the short term, Bitcoin remains strong and maintains a long-term bullish structure. While price action has yet to confirm a decisive breakout, many investors are watching closely for signs of an explosive move.
CryptoQuant data shared reveals that Bitcoin’s volatility range has halved over the past month, dropping from 80% to 40%. This compression in volatility suggests that BTC is entering a phase of tight consolidation, a pattern that often precedes a significant breakout. Historically, when Bitcoin’s price movement becomes increasingly narrow, it tends to result in an aggressive move in one direction.
Bitcoin is trading below the $100K mark, facing key resistance at $98K and strong support around $94K. If the price reclaims $100K and holds above it, a massive rally into price discovery will likely follow. However, a breakdown below $94K could trigger selling pressure, leading to lower demand levels.
Bitcoin Price Signals A Potential Move
A positive view suggests that Bitcoin is preparing for a massive move into all-time highs, as speculation grows that this recent consolidation is merely the calm before the storm. BTC remains strong, maintaining a long-term bullish structure despite failing to confirm short-term direction. The market has been in a tight range for the past few weeks, with BTC trading between $94K and $100K, frustrating both bulls and bears as investors await a breakout.
CryptoQuant analyst Axel Adler shared an analysis on X revealing that over the past month, Bitcoin’s volatility range has halved, dropping from 80% to 40%. Adler states that, in the end, this compression will lead to an aggressive move in one direction. Historically, when volatility contracts to this extent, it signals that a significant price movement is on the horizon.
Some analysts speculate that Bitcoin will drop below the $90K level, setting new short-term lows before finding strong demand. Others expect the price to push above ATH, breaking past $109K and entering price discovery.
The next major move will determine Bitcoin’s trajectory for the coming weeks, and investors are bracing for a high-volatility breakout. The market is at a tipping point, and whichever side gains control will dictate the next major trend.
Price Action: Technical Analysis
Bitcoin is trading at $96,400 after two weeks of uncertainty and selling pressure below the $100K level. Bulls must hold current prices and push above the $98K and $100K marks, which align with the 4-hour 200 EMA and MA, respectively. Reclaiming these levels as support is essential to confirming a breakout and shifting sentiment back in favor of buyers.
Investors are growing increasingly frustrated as price action remains indecisive, lacking clear confirmation for either a bullish breakout or a deeper correction. Bitcoin has been stuck in a tight range, with failed attempts to break higher or lower, leaving market participants in a wait-and-see mode.
If BTC manages to push above $100K and hold it as support, an aggressive rally toward new all-time highs could follow. However, failing to reclaim these levels and breaking below the $94K support could spark a wave of selling pressure, sending BTC into lower demand zones around $90K.
The market is at a critical juncture, with compression building up. A strong move in either direction will likely dictate the next major trend. For now, bulls and bears remain in a standoff, awaiting the catalyst that will trigger Bitcoin’s next big move.
Featured image from Dall-E, chart from TradingView
