Popular trader and analyst Daan Crypto Trades has highlighted a potentially decisive moment for Bitcoin, urging traders to watch the current monthly high and low closely.
According to his analysis, the price action is nearing a critical juncture where a breakout is likely to trigger a strong directional move.
Daan points out that historically, Bitcoin does not stay within such a tight monthly range for long. The current total displacement — the difference between the monthly high and low — is just 10.3%.
He notes that in the past four years, Bitcoin has always exceeded this percentage before a month’s end, making it unlikely that the current levels will hold.
“The odds strongly favor a trending month the moment either of these levels is broken,” he explained. This implies that a breach of either the monthly high or low could lead to increased volatility and a continuation of trend momentum in that direction.
For traders looking to capitalize on the upcoming move, Daan suggests that momentum strategies may perform well, especially once a confirmed breakout occurs. “The market likely extends further upon a break of either of these two,” he wrote, adding that such setups offer potentially profitable entries for those looking to ride the next wave.
With Bitcoin currently hovering in a compressed trading zone, all eyes are now on whether bulls or bears will take the lead — and when.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
Source: https://coindoo.com/bitcoin-poised-for-major-move-as-monthly-range-narrows-analyst-says/