Bitcoin Consolidation Likely Before Further Rally, Says Crypto Analyst

Source Link: "Bitcoin Chart Analysis"

According to a crypto analyst, it is highly probable that Bitcoin will undergo a period of consolidation prior to embarking on its next exhilarating upward surge.

After surging over 35% in recent weeks, Bitcoin saw a 5% correction that shook some bears calling for further downside. However, according to one professional trader, such large pullbacks are unlikely at this stage.

In his recent "Bitcoin Chart Analysis" published on TradingView, cryptocurrency analyst CryptoTrades dismisses the notion that Bitcoin could retest "$20k-15k targets" put forth by bears after the minor dip.

Analyzing the chart, CryptoTrades notes that crypto market funding rates have returned to normal levels after the volatility, suggesting bearish bets have diminished.

The trader lays out his assessment of the most probable near-term scenario:

• Bitcoin is unlikely to break below the $31.5k level before retesting overhead liquidity between $36.5k-$37.5k first

• From there, BTC may touch support at the July high around $31k to grab more liquidity

• This would set the stage for further upside momentum carrying prices towards major resistance in the $42k region or potentially as high the 2022 open

However, CryptoTrades cautions traders to exercise "strict risk management" if acting on this outlook. In his analysis, consolidation appears more probable in the short-term before Bitcoin potentially resumes its upside move. Investors should watch upcoming price action for confirmation of this bullish technical perspective according to the analyst.

The insightful analysis sheds light on why the recent 5% dip may not signal deeper downside, providing context for the technical factors crypto traders are monitoring at this pivotal stage of the emerging bull trend.