Bitcoin (BTC) could be at the gates of a new movement that drives it to levels never seen before.
It is that, according to SWISSBLock Technologies analysts, a digital asset market analysis firm, the price of Bitcoin is in a Compression phase and consolidation within the range between $ 100,000 and $ 110,000. Although they do not directly anticipate a break, this type of technical behavior usually precedes significant movements.
“Silently, without noise, BTC is forming another minimum higher, absorbing external pressure and geopolitical stress. There is still no break, but the end of consolidation can be close,” they said.
The publication is accompanied by a chart in which it can be seen that BTC is consolidating the formation of a bullish triangle (red lines). As Cryptonoticia explained, it is a technical analysis pattern that awakens enthusiasm among investors.
The formation of the flag begins with a strong bullish impulse, followed by a price compression stage, where maximum and minimums narrow until they collide at one point. Generally, The flag rupture is usually resolved with a rise.
In the previous image, the orange dotted lines, meanwhile, are resistances and supports in the price of BTC. On the right, two histograms show where BTC activity is concentrated according to the price.
The first reflects the volume ON-CHAINthat is, how much BTC moved on the network to different price levels; while the second indicates the volume of trading in exchanges. Both metrics coincide in a key zone: between $ 100,000 and $ 105,000. This volume concentration indicates an area of strong market interestwhere many investors bought or sold BTC.
That is, that area works as a resistance, a level that the price of an asset usually has difficulties in exceeding due to the sale pressure in the 105,000 dollar zone.
A fact that does not have to lose sight of is that this price consolidation occurs in the middle of a macroeconomic context that does not accompany due to the tensions in the Middle East following the war between Israel and Iran. In other words, even in a scenario of economic uncertainty and global tension, BTC shows strength.
The large price catalyst could appear after the United States Federal Reserve (FED) announced whether or not to cut interest rates. Although the market is considered as it will remain at 4.50%, The real interest is in the message that Jerome Powellholder of the agency, broadcast after the meeting of the Open Market Operations Committee (FOMC).
It is that Powell’s words could give key signs about possible cuts or a hardening of monetary policy. If the market interprets the message as positive, it is likely that this impuls up with Bitcoin and cryptocurrencies. On the other hand, if a more conservative tone prevails, there could be price setbacks.
This is because when the interest rate is low, the cost of indebtedness also decreases and, therefore, increases the appetite for the assets considered risk, such as actions, BTC and cryptocurrencies. Otherwise, if rates upload, investors will seek refuge in safer instruments, such as treasure bonds, which generate less yields but are not exposed to market volatility.
Apart from what happens this afternoon, the other great price catalyst is that the institutional adoption of BTC is intensified as a reserve asset. As Cryptonotics reported, more and more companies are analyzing different alternatives to form Bitcoin strategic reserves, a model designed by Michael Saylor, Strategy’s CEO.
On this trend, the BTC trader and analyst, Willy Woo, says: “I have never seen flows to BTC so fluid; it is as if the institutions were averaging the cost in dollars with their billions.” It also projects that, once the historical maximums properly break, BTC’s price could climb $ 118,000 In the short term.
