Analyst Predicts End of Bitcoin’s ‘Chopsolidation’ Phase
Bitcoin's market trend may be near a significant shift, according to an analysis by CryptoQuant analyst Percival. He describes the current phase as “chopsolidation,” indicating a period of minimal directional movement and price consolidation without a clear trend.
Percival suggests this phase may be ending, with an imminent market movement expected in the coming weeks. The Chopsolidations metric assesses the exhaustion level of the current trend but does not predict Bitcoin’s next move. It helps determine whether the price is due for a reversal or continuation. Despite indicators of strength, the market remains divided on Bitcoin’s direction.
Some investors believe recent accumulation could push Bitcoin past its all-time high, while others anticipate cautious upward movement or a potential correction.
Assessing Bitcoin’s Support Levels And Potential Price Rebound
Percival identifies two key periods in September and October where Bitcoin established notable support levels, marked by brief but significant price stability zones.
These areas, indicated as orange zones on his chart, served as points where Bitcoin’s price stabilized temporarily due to strong demand. With current prices near these support levels, there is potential for a new bottom if short-term downward pressure occurs, possibly leading to upward movement in the following weeks.
The Chopsolidations indicator shows signs of readiness for a strong trend based on weekly and monthly readings. While Percival did not specify a particular directional bias, he noted that current market strength might drive Bitcoin’s price upwards if demand or a favorable macroeconomic environment aligns positively.
Bitcoin Continuous Struggle To Make A Major Move
Bitcoin has struggled to make a significant upward move, experiencing calmness in volatility after its decline below the $70,000 mark. Currently, Bitcoin trades at $68,721, maintaining stability for the past three days since its recent decline.
Featured image created with DALL-E, Chart from TradingView