Bitcoin Maintains a $5,000 Price Range for Nearly 150 Days: An Unusual Pattern or Typical Behavior?
Summary:
CryptoSlate analyst James Van Straten has noticed a pattern in the Bitcoin (BTC) price trends. The cryptocurrency has remained within a $5,000 trading range for nearly 150 days. Van Straten suggests that such price behavior is not an anomaly but typical of Bitcoin's trading patterns. Furthermore, the recent launch of Bitcoin ETFs, significantly impacting the BTC supply dynamics, has not markedly influenced BTC's price, leading to moderated price expectations among traders. As a result, experts predict that Bitcoin might regain bullish momentum only a few months after the upcoming block subsidy halving event.
CryptoSlate's research and data analyst, James Van Straten, has discovered a peculiar pattern in Bitcoin's (BTC) price trend. The flagship cryptocurrency has been stationary within a $5,000 cost corridor for approximately 150 days. Despite hitting record highs in 2024, Bitcoin's price failed to maintain its momentum, settling within a $5,000 trading bracket instead. As a result, the BTC/USD has rigidly adhered to this price range for almost five months as of February 2.
Van Straten observed that Bitcoin had been consistently transacting within the $40,000 to $44,999 range for 146 days. Interestingly, this period surpasses its previous stay in the $35,000 and $39,999 bracket that lasted approximately 138 days. While this seemingly inflexible price action may irritate both bulls and bears, Van Straten emphasizes it’s typical of Bitcoin's trading habits, not an anomaly.
He explains that Bitcoin generally remains in different $10,000 price "buckets" for periods ranging from 100 to 250 days. This means the ongoing stagnant price action aligns with Bitcoin’s past trading phenomena.
The failure of the recently launched spot Bitcoin exchange-traded funds (ETFs) to significantly bolster BTC's price has made traders recalibrate their price expectations. As the block subsidy halving event draws nearer, market predictions suggest that Bitcoin may only regain its bullish momentum months afterward.
Michaël van de Poppe, founder and CEO of MN Trading, believes Bitcoin will continue traversing the $38-48K range, which he has been pointing out for nearly two months. He also predicts a likely short-term correction, followed by a minor pre-halving rally to $48K.
Despite the excitement around the halving event and its impact on BTC supply dynamics, ETFs have silently begun siphoning coins from the market at a rate estimated to be ten times faster than new supply per day. Tuur Demeester notes that the top two Bitcoin ETFs are acquiring approximately 9,000 BTC per day, resulting in ten times the daily mining yield. This tendency is expected to double after the halving event, emphasizing the immense significance of ETFs.
This article does not provide investment advice or recommendations. Investing and trading carry risks, and potential investors should conduct independent research before making a decision.
Published At
2/2/2024 10:56:49 AM
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