Bitcoin was back in the green following the weekend jitters. Coinbase, which recently received a notification from the SEC, was closely observed by cryptocurrency traders, who did not record any significant change in the market.
Veteran trader Tone Vays said that the present consolidation in Bitcoin (BTC) is preparing the king coin for a quick breakout. Vays explained that Bitcoin’s consolidation is a good thing because it gives BTC a chance to catch its breath before continuing its rise.
The trader gave an example of how Bitcoin reacted when the bear market was at its worst last year. Vays claimed that in May and June 2022, Bitcoin went through a temporary fall before crashing through the crucial level of $20,000.
“Consolidations tend to lead to continuations of trends… We saw that here [May 2022]. Consolidation after a big drop led to another big drop,” he said.
He highlighted that despite this, Bitcoin is still in an uptrend and is currently consolidating between $27,500 and $28,500. Now that the coin has unlocked a new range, one should wait and watch if the coin will head to the top of that range.
He also said that the longer time BTC spends between $27,500 and $28,500, the better the breakout is going to be. Vays also noted that Bitcoin’s technical indicators are glowing green when he looks at the monthly chart.
Bitcoin Rejects Important Level
The bullish rise in Bitcoin was rejected after it reached the crucial price zone of $29-30K, and the market returned to the consolidation range of $27-28K. The $30K level will probably act like an obstacle in the coming near term. Before the rally to the current Bitcoin ATH of $69K, which was recorded in November 2021, this range was the bottom, which was recorded in mid-2021.
Source: https://coinpedia.org/bitcoin/top-crypto-analyst-predicts-bitcoin-breakout-heres-what-next-for-btc-price/