Crypto: Bitcoin Analysts Predict ‘prolonged’ Consolidation Phase For BTC Price

Glassnode analysts said Bitcoin remains stuck between “key cost-basis levels,” and a prolonged consolidation period may lie ahead even if traders are actively buying dips to the range lows.

Fresh data from Glassnode says Bitcoin (BTC) may be in for another “prolonged phase of range-bound” price action if key support levels are not reclaimed.

Bitcoin is stuck between key cost-basis levels, predicting 2022-type consolidation unless key support levels are reclaimed.

Bitcoin price needs to take out the resistance at $72,000 to break out of consolidation.

In the Feb. 11 edition of its regular newsletter, The Week On-chain, onchain data provider Glassnode confirmed key supply zones constraining upside follow-through and “creating overhead resistance potential during relief rallies.

The BTC/USD pair is trading within a new range defined by the True Market Mean currently at $79,200 and the realized price near $55,000, closely resembling the structural environment observed during the first half of 2022.

According to Glassnode, Bitcoin’s price is expected to continue oscillating within this corridor until new buyers emerge and gradually accumulate supply.

The chart below shows that the price spent April-June 2022 trapped between the True Market Mean and the Realized Price before entering an extended bear market, bottoming around $15,000 in November 2022.

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A breakout from this range would require an extreme catalyst, “either a decisive reclaim of the True Market Mean near $79.2K, signaling renewed structural strength, or a systemic dislocation similar to LUNA or FTX that forces price below the Realized Price around $55K,” Glassnode said, adding:

Source: CoinTelegraph