After a new ATH at $104,000, the Bitcoin slows its course hovering between $98,000 and $100,000. The latest technical analyses indicate that the leading crypto should go through a significant period of consolidation before breaking through the symbolic $110,000 barrier..
Table of Contents
Bitcoin hits a technical wall at $110,000
The Bitcoin market is currently going through a phase of notable instability, as evidenced by the Choppiness Index (CI). This technical indicator, which measures preference on a scale of 0 to 100, now stands at 56.7, its highest level since mid-August. This rise signals a period of more erratic, less directional movements for the leading crypto.
Analysis by CryptoQuant suggests that a period of consolidation may be setting in before any progress is made towards new heights. Bitcoin could therefore face a stabilization phase before crossing the psychological threshold of $110,000.
Variation was particularly evident last week, with a sharp drop of more than 10% after reaching all-time highs. This correction led to nearly a billion dollars in liquidations in just 24 hours.
Technical outlook points to prolonged consolidation
Historical analysis of Bitcoin cycles reveals interesting patterns for investors. CryptoQuant data shows that consolidation periods last on average 20 days, as observed during the 2020/2021 cycle. Even more significantly, the duration of these consolidation phases appears to be directly correlated with the magnitude of subsequent rises.
Short-term holders, defined as those who have owned Bitcoin for less than 155 days, could play an important role in price dynamics. Their profitability levels are between $110,000 and $120,000, creating significant areas of resistance.
The psychological level of $120,000, in particular, could represent a major hurdle requiring a period of further consolidation.
Caution therefore remains the order of the day, as the market appears to be gearing up for a period of more sideways movements. As analysts point out, the longer the consolidation period, the more powerful the subsequent upward movement could be.
As a journalist at Coinpri, I’ve been captivated by the world of bitcoin and blockchain since 2020. The decentralized aspect of Bitcoin particularly piqued my interest. Since then, I’ve been working constantly to spread my knowledge, hoping one day to see a world where everyone fully enjoys their financial freedom.
