Analyst Reveals Bitcoin’s ‘Chopsolidation’ Phase Nears End—Are New Highs in Sight?
06 November 2024 - 6:30AM
NEWSBTC
Bitcoin market trend may be on the verge of a significant shift,
according to a recent analysis shared by CryptoQuant analyst
Percival. Percival described Bitcoin’s current phase as
“chopsolidation,” a term used to describe a period of minimal
directional movement where price consolidation occurs without a
clear trend. This period, he suggests, may be drawing to a close,
with an imminent market movement expected in the coming weeks. The
Chopsolidations metric, as Percival notes, doesn’t predict the
direction of Bitcoin’s next move. Related Reading: Bitcoin
Long-Term Holders Offload Over 177k BTC: Is A Price Surge Or
Correction Next? Instead, it assesses the exhaustion level of the
current trend, helping to determine whether Bitcoin’s price is due
for a reversal or continuation. Percival’s analysis highlights that
while there are indicators of strength at various points, the
market remains divided on Bitcoin’s next direction. So far, some
investors believe that recent accumulation is sufficient to push
Bitcoin past its all-time high, while others expect a more cautious
upward movement or even a potential correction. Assessing Bitcoin’s
Support Levels And Potential Price Rebound Percival’s analysis
further points to two key periods in September and October where
Bitcoin established notable support levels, marked by brief but
significant price stability zones. These areas, which he identified
as orange zones on his chart (shared above), served as points where
Bitcoin’s price “reloaded” — essentially, zones where demand was
strong enough to halt price declines temporarily. With the current
price hovering near these support levels, Percival suggests that
the market may find a new bottom if Bitcoin faces any short-term
downward pressure. This support could create a foundation for
upward movement in the weeks ahead. The Chopsolidations indicator,
according to the CryptoQuant analyst’s breakdown, is showing signs
of readiness for a strong trend based on weekly and monthly
readings. Although he did not specify a particular directional
bias, he noted that the current market strength could be enough to
drive Bitcoin’s price upwards if additional demand or a favorable
macroeconomic environment aligns with market sentiment. This trend
could play out over the short term, where sufficient market
activity might lift Bitcoin’s price. Bitcoin Continuous Struggle To
Make A Major Move So far, Bitcoin’s price has continued to face a
struggle to make a significant move, especially to the upside.
Instead, the asset has seen a form of calmness in volatility
following its recent decline below the $70,000 price mark.
Particularly, at the time of writing, the asset currently trades
for $68,721—a price region BTC has remained quite stable for the
past 3 days since its most recent decline. Featured image created
with DALL-E, Chart from TradingView
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