Bitcoin is tightening its range at a critical point support areawith pressure on price action after weeks of sideways movement. As volatility and momentum contracts form below key resistance, the market appears to be preparing for a decisive breakout. With great support now, the stage is set for a major move.
Consolidation Zone Signals Strategic Gathering
Crypto analyst Donald Dean emphasizes Bitcoin is currently in a prime position for consolidation and consolidation. Meanwhile, price action continues to respect an important support trend to buy activity occurs near the $69,000 mark. This persistent behavior indicates that the market is making a solid floor and allows investors to accumulate positions before the next important move.
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From a technical perspective, this $69,000 area represents a major support area and a major retest break out in 2024. Dean views this phase as a healthy development for the asset’s long-term trajectory. Once multi-year support is confirmed, Bitcoin will essentially create a launch pad that will serve as the foundation for a steady move toward higher values.
Looking at the weekly chart, Dean identifies the specifics up targets based on volume and Fibonacci extensions. The first target is the $90,000 volume shelf, which acts as a magnet for the price. Furthermore, the golden ratio (through 1.618) suggests a target of $102,000. After clearing these levels, the next major challenge involves a move to $122,000, representing a 2-fold increase from the previous low to high.
However, the long-term outlook is even more ambitious, if bullish impulse to be continued. Furthermore, Dean notes that the next gold ratio at the 2.618 extension puts the target at around $155,000. Although these figures show important milestones, the current focus is on the successful defense of the $69,000 level to confirm the structural integrity of the bull market.
Weeks of sideways movement, Bitcoin’s breakout is not clear
Recently updateCrypto Candy highlighted that Bitcoin remains in the consolidation phase and has been trading in the $60,000 to $70,000 range for weeks. Despite numerous attempts to exit, the price continues to move within this zone, which indicates a lack of confidence between buyers and sellers.
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After a brief dive to the $62,000 area, BTC once again rose to $70,000. But, this return does not change the scope structure. Without a definitive breakout, these moves are viewed as internal reversals rather than the start of a sustained trend.
At the moment, Crypto Candy maintains a bearish bias if Bitcoin convincingly turns the $71,000-$72,000 resistance zone into support. As long as the price remains below this threshold, expect another leg to $61,000 or possibly lower.
Featured image from Pixabay, chart from Tradingview.com
