Cryptocurrency analytics firm Alphractal has released its latest views on Bitcoin, suggesting that BTC will enter a price discovery phase between $70,000 and $90,000 in the coming months.
This range represents a $20,000 gap, where key derivatives metrics such as open interest, number of trades, and purchase volume point to a lack of historical consolidation.
According to Alphractal’s analysis:
- The $70,000 level is likely to act as a strong support zone.
- The $100,000 mark is expected to serve as a key resistance point.
Price volatility can lead to frequent liquidations of both long and short positions due to poor price stability. The divergence in price movements between derivatives and spot markets has continued on Binance since Bitcoin’s recent peak.
Alphractal also notes that the current market structure reflects increased short interest, position closings, and strategic moves by market makers. Additionally, historical trends show that negative values in fundamental metrics usually signal either a bottom consolidation phase or an extended downtrend.
The report also points out that whale activity on the Bitcoin network has decreased and transaction volumes have fallen, suggesting that the market has not yet moved into a new high-demand cycle.
*This is not investment advice.
Source: https://en.bitcoinsistemi.com/analysis-company-speaks-after-the-fall-shares-what-to-expect-in-bitcoin-in-the-coming-months/