Originally published on: August 01, 2024
Since the highly anticipated Bitcoin halving on April 20, Bitcoin’s price has been stuck in a consolidation phase, ranging from $58,000 to $72,000. However, market analysts are pointing towards signs of a potential breakout on the horizon. The big question that remains is: when will Bitcoin finally break out of this consolidation?
According to crypto analyst Rekt Capital, September could be the month for Bitcoin to break out of consolidation. In a recent post on July 30, the analyst highlighted the failure of Bitcoin to break out of the reaccumulation range in the 100 days following the halving, making a breakout unlikely but not impossible.
Technical chart patterns indicate that Bitcoin is currently trading within a descending parallel channel. Reclaiming the $65,000 mark could signal further upside momentum for the digital asset, according to the analyst.
Another independent analyst, Jelle, predicts a potential reversal in Bitcoin’s price trajectory, aiming for the $100,000 milestone in the coming months. This target is based on a multi-year falling wedge pattern.
Volatility indicators suggest that an “explosive move” in Bitcoin’s price is looming. Matthew Hyland, a renowned trader and analyst, pointed out the tightening conditions of the Bollinger Bands on the weekly timeframes, signaling an imminent breakout.
The current state of the Bollinger Bands Width indicator, at its third-tightest level ever, supports the likelihood of a breakout from the ongoing consolidation phase. This pattern mirrors previous instances seen in April 2016 and August 2023, both leading to substantial price surges in Bitcoin.
While there are no specific investment recommendations in this article, the data and analysis provided offer valuable insights for those following Bitcoin’s price movements. Market participants are advised to conduct their own research before making any investment decisions.
For more in-depth analysis and market insights, subscribe to the Markets Outlook newsletter for critical updates on investment opportunities and trading strategies every Monday. Stay informed and make informed decisions in the dynamic world of cryptocurrency trading.