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Bitcoin Expansion Will Be Violent After the Compression phase

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Analyst Sees a Bitcoin Market Shift — Here’s What’s Happening
Analyst Sees a Bitcoin Market Shift — Here’s What’s Happening

The following are key points. 

  • ETF flows and accumulations by institutional and retail investors show that Bitcoin is perceived to trade at a discounted price. 

  • The US macroeconomic events scheduled for next week should resolve a few fear-based catalysts which are causing prices to fall across the cryptocurrency market. 

BitcoinBTCThe majority of traders spent the week in contention, as sellers cap each price break at $112,000 while buyers defend any dips in the $107,000-108,000 range. 

BTC has been unable to maintain its price above $112,000, and it is frequently returning to range lows. But the 5-hr higher lows as well as the lower daily highs shown on the candlestick charts (below), could be an encouraging sign. 

Many traders use technical analysis to make their point. “compression before expansion” After a significant market event like the 10th of October sell-off which saw BTC interest open drop by 50 percent, it is expected that volatility will decrease and prices will consolidate. 

BTC/USDT 4-hour chart. TradingView

BTC is likely to return into the $120,000 range in the future. Bitcoin spot ETFs received $477 million on Tuesday when BTC’s price rose to $114,000, up from $107 500. 

Related: 10/24 Price Predictions: BTC. ETH. BNB. XRP. SOL. DOGE. ADA. HYPE. LINK. XLM.

The data also shows spot-buyers across all order sizes at Binance and Coinbase, who are buying throughout the entire range of $101,500 for Binance up to this week’s high (114,000). 

BTC/USDT cumulative volume deltas for spot and futures. Source: Hyblock

Glassnode also reports a Bitcoin Accumulation trend score of 0.924. The onchain data provider explained this. “trend score closer to 1 indicates that on aggregate, larger entities (or a big part of the network) are accumulating, and a value closer to 0 indicates they are distributing or not accumulating.” 

The Bitcoin accumulation score is 0.924. Source: Glassnode

Numerous analysts believe that Bitcoin’s range-consolidation could end next week and that altcoins may begin to recover as the US macroeconomic schedule is filled with events. 

The article does not provide legal advice or investment recommendations and it is intended for informational purposes only. This article is solely for informational purposes. It does not represent or reflect Cointelegraph’s views.