Bitcoin has been trading within a narrow range for over 200 days, with altcoins remaining at stable price levels. Analysts evaluate the current market situation and possible changes.
Historical Context of Price Ranges
The longer an asset stays in a range, the more major the potential breakout can be. The analyst pointed to examples such as the range Bitcoin traded in from April to October 2020 (between $8,000 and $12,000) before breaking into a bull market. Similarly, in 2015-2016, Bitcoin consolidated before a major upward movement.
Current Price Action Analysis
Currently, Bitcoin is showing lower highs and lower lows, indicating a potential downtrend. However, there are signs of a reversal, as recent movements suggest the formation of a higher high and possibly a higher low. If this trend continues, the analyst believes Bitcoin could reach around $90,000 in the next few weeks.
Altcoins Stagnation
While Bitcoin has reached new all-time highs, altcoins have not performed as well and are lagging significantly. The total market cap for altcoins is still about 50% below its all-time high. The analyst pointed out that if the total altcoin market cap breaks above $660 billion, this could trigger a substantial rally across the altcoin market.
Market dynamics may not strictly follow the traditional four-year cycle, as liquidity plays a crucial role. Recent charts suggest we are entering the final year of the current bull cycle, with potential Bitcoin price peaks from $300,000 to $400,000 by 2026.