Bitcoin (BTC) broke the $46,000 barrier after several weeks of consolidation, marking a multi-week high. This price increase hasn’t been seen since January 12, the day spot bitcoin exchange-traded funds (ETF) became a reality.
The increase was attributed to heightened accumulation of BTC by large holders and new all-time highs in U.S. equity indices. Following the price surge, analysts are gauging Bitcoin’s next potential moves, and one of them suggests that abrupt change is near the corner.
Bitcoin to $100k is Feasible
Jacob Canfield, a popular trader in Crypto Twitter, believes Bitcoin could top $100K in his latest analysis on his YouTube channel. The periods of consolidation paved the way for the altseason, which the analyst suggested was driven by rotations within Layer-1 projects, AI crypto pumps, and increased activity in the GameFi sector.
Canfield, however, is convinced Bitcoin will suck the liquidity out of the market and will continue to impose its dominance against other coins.
If you lack conviction and your hands are made of paper, set up a system that makes it hard to sell. Put it in a cold storage wallet. Go into a medically induced coma
We got a tiny taste of an alt season so far while Bitcoin consolidated in the $36k-$39k range.
L1 rotations, AI pumps, gaming pumps… but that’s just the start.
Bitcoin will suck the liquidity out of the market for a while. Find the high beta levers that move with #bitcoin… pic.twitter.com/ccC2U4zDIX
— Jacob Canfield (@JacobCanfield) December 5, 2023
The Not So Good News
Meanwhile, another analyst has raised concerns over Bitcoin’s volatility. Popular trader HornHairs flagged a rare signal involving the Bollinger Bands volatility indicator, suggesting that BTC could either reach new highs or lows within the next ten days.
Bollinger bands are a popular technical analysis used to assess market volatility and potential price movements. Composed of three main lines, Bollinger Bands adjust to market volatility —wider bands indicate higher volatility while narrower bands suggest lower volatility, providing traders with valuable insights into market conditions.
In BTC’s case, the Bollinger Band width has reached historically low levels, something that rarely happens and precedes substantial price swings. While the direction of the impending move remains uncertain, the analyst warned traders to have a plan in case “things launch upwards or nuke lower”.
Similarly, another analyst, CryptoCon, talked about how Bitcoin will likely revisit the $31,300 level based on a metric considered a reliable indicator of market behavior.
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