While Bitcoin has continuously fluctuated between $ 9,000 and $ 10,000 in recent days, the cryptocurrency is still technically in a consolidation pattern.
Whenever BTC tries to deviate from the range, it is rejected – on both sides. For example, when the asset rose to $ 10,400 last week, a fall of $ 1,500 followed.
An argument has been advanced that consolidation is the distribution of textbooks.
One actually compared the recent price action to a textbook scheme first identified by late technician Richard Wyckoff. This is relevant because the schedule predicts an upcoming correction of 30% that will bring Bitcoin back into a short-term bear phase.
But as BTC continues to move towards the top of the range, an analyst expects the cryptocurrency to hold a rally that will “melt faces”.
Bitcoin could see a Face Melting Rally soon
Prior to the Thursday drop of $ 1,000 on the back of a crashing S&P 500, a cryptocurrency trader shared the chart below to identify the distribution. “Lots of pips without sequels here,” he said wrote in reference to Bitcoin’s inability to spot a trend as it depends on the range.
While Bitcoin’s $ 1,000 drop slightly changes the chart, the cryptocurrency is still stuck in the analyst-identified range.
According to him, this means that if BTC once again exceeds $ 10,000, a rally will follow that will ‘melt faces’.
His chart indicates that above $ 10,000 – or $ 10,500 to be precise – is a lack of historical volume according to the Volume Profile indicator. Prices often move quickly in zones with little historical volume.
$ 10,500 is also the point where Bitcoin rallied last year: once in the “Xi Pump” in October 2019 and one earlier this year. This historical importance further underlines the importance of BTC bulls breaking beyond this price level.
On-Chain Trends confirm the sentiment
On-chain trends confirm the sentiment that Bitcoin is about to burst into its next full bull phase.
Ikigai’s senior quantitative analyst Hans Hague explained that BTC is in “heavy accumulation”, which has increased the average holder’s tendency to “HODL” their coins. Hague has shared the chart below, which shows the price of Bitcoin alongside the Adjusted Binary BDD indicator, to illustrate this point.
The analyst added that with more and more Bitcoin investors buying and holding and block rewards declining after halving, BTC is likely to see “ fireworks ” soon.
Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Bitcoin Price Will "Melt Faces" Next Time It Surges Past $10,000: Here's Why