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After surpassing $90,000 for the first time on November 12, 2024, Bitcoin (BTC) is trading in a wide range between $91,000 and $108,000. However, some analysts remain optimistic that BTC is poised to break out of this upward range after what they describe as a “final capitulation.”
Is Bitcoin consolidation coming to an end?
Crypto analyst Trader Tardigrade recently shared his analysis of Bitcoin price action on The analyst commented:
The current cryptocurrency market sentiment is not great. In fact, I would welcome a slowdown in the coming days to complement this price action. Bitcoin experienced a definitive capitulation at the 27th bar during the consolidation in January 2024, just before a massive rebound. If history repeats itself, the final level of capitulation will be reached today or tomorrow. After that, BTC will increase with a massive rebound.
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To support his prediction, trader Tardigrade shared a chart comparing Bitcoin’s current price action with its behavior in January 2024. During this period, BTC consolidated for 53 days, suffered a final capitulation, and then recovered sharply from around $39,000 to this high. $71,000.
Interestingly, Bitcoin’s current consolidation phase has already lasted more than 50 days. If BTC follows its January 2024 pattern, the final capitulation could occur on January 13th or 14th.
Another crypto analyst, @CryptosBatman, highlighted the tightening Bollinger bands on Bitcoin’s three-day chart. They pointed out that Bollinger bandwidth has reached an extremely oversold level and remarked:
Historically, such dips signal a local bottom. It is notable that the bandwidth is now narrower than when Bitcoin was at $50,000, suggesting that the bottom could be very close.
For the uninitiated, Bollinger Bandwidth is a metric derived from Bollinger Bands that measures the distance between the upper and lower bands from the moving average. It is often used to identify periods of low volatility, which can signal potential breakout opportunities.
Crypto analysts predict a positive 2025
Even though Bitcoin’s ongoing consolidation phase could frustrate buyers, many analysts remain convinced that the digital asset will benefit from multiple favorable factors in the coming months.
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For example, crypto entrepreneur Arthur Hayes recently predicted that BTC could rebound in the first quarter of 2025 following the decision of the US Federal Reserve (Fed) to inject new liquidity into the US economy through money printing.
Likewise, crypto analyst Dave The Wave has foreseen that BTC is likely to peak during the summer of 2025. At press time, BTC is trading at $96,424, up 4.9% in the last 24 hours.
Featured image from Unsplash, charts from X and TradingView.com
