Bitcoin’s price has been consolidating below the $100K level for the past few months, and it has yet to show any willingness for an impulsive move.

However, things might be about to change soon.

Technical Analysis

By Edris Derakhshi (TradingRage)

The Daily Chart

The price action on the daily timeframe has been very choppy for Bitcoin lately, as the market has been moving sideways in a range between the $100K and $92K levels. A breakout from either of these levels will likely initiate a significant move for the asset and most alts, as a new all-time high or a deeper correction are the possible outcomes.

Yet, as the RSI is showing bearish momentum, the more likely scenario is for the price to drop briefly below the $90K level and even toward the 200-day moving average, located around the $80K zone, before moving higher again.

The 4-Hour Chart

The 4-hour chart shows a classical price action pattern, the descending channel, that could lead to a rebound sooner. While the market has been trapped inside this channel for the past couple of weeks, a breakout above it would lead to a rally above the $100K level, which could be the beginning of a new bullish run.

However, it should always be noted that when a bullish pattern is broken to the downside, it aggravates the bearish momentum, and the same should be considered about this channel.

On-Chain Analysis

By Edris Derakhshi (TradingRage)

Exchange Whale Ratio

The Bitcoin market has been predominantly controlled by a cohort of large investors, either individuals or institutions, known as whales. Therefore, this chart presents an approximate indication of their behavior, the exchange whale ratio, could be very helpful for determining the current state of the market.

This metric measures the ratio of large deposits, which are likely made by whales, to total exchange inflows. High values of this metric show higher whale selling pressure relative to the whole market, and could be an indication of an upcoming drop.

As the chart suggests, while the whale ratio has been rising again recently, the asset has not been dropping significantly. While an increase in the whales’ selling pressure is a worrying signal, the fact that the market has held so strong is a good sign, which could mean more sustainable trends and stability for BTC.

The post Bitcoin Consolidation Nearing an End? BTC Price Analysis Suggests a Breakout appeared first on CryptoPotato.