- Bitcoin has entered a consolidation above a key support phase after a recent correction.
- Analysts say holding the 21-day moving average and the reclaim of $92,000 is key for rebound.
- While some expect extended sideways action, others see potential for a rebound.
After the price correction this week, Bitcoin has entered a fresh consolidation. This leaves two possibilities – either a breakout to higher prices or a breakdown to lower levels, but which one will play out first?
Top analyst Michaël van de Poppe said in an X post that Bitcoin is in a state of “boredom” as it consolidates above the 21-Day Moving Average (MA). This is a critical price level that has defined Bitcoin’s macro trend since last year.
According to Poppe, there is no immediate concern as Bitcoin is consolidating above the line. However if the asset breaks under the line turning it into resistance, it may be another big battle for Bitcoin to break out of as was the case until recently.
Bitcoin Risks Further Drop Unless it Reclaims $92K
The 21-Day MA is a critical support that Bitcoin is sitting on, but the asset needs to make an upward move or it risks dropping to lower ranges. Another analyst has highlighted the need for Bitcoin to reclaim $92,000 which it broke through easily on its way up during the recent rally. If this fails, the coin may drop to $88,000 with a chance of dropping even lower.
CryptoQuant founder Ki Young Ju had earlier warned of this “boring” sideways movement which he said would last for months. He expects this scenario as he says money has rotated back into stocks and precious metals like gold and silver. However, the price of Bitcoin has proven to be pretty unpredictable, and other analysts believe a rebound is possible in the short-term.
Recent comments from experts in the industry suggest that a reclaim of $92,000 and a clean break through $95,000 will set Bitcoin on the path to $100,000. However, this may not be easy seeing that there may be traders waiting to take profit within the range as was the case earlier this week.
Bitcoin Still Holding Tight
As the consolidation and sideways movement continues, Bitcoin is demonstrating some strength above $90,000, even inching higher towards $91,000. At the time of this report, the asset is trading at $90,535.
If the momentum is sustained, Bitcoin could head higher and reclaim the $92,000, which will increase the chances of approaching the next resistance at $94,000.
BTC price today
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What do you think?
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