Bitcoin (BTC) is still in a consolidation phase, according to seasoned market analyst Peter Brandt, who has reiterated his view.
Recently, BTC experienced a modest recovery, briefly climbing back above $61,000, sparking renewed optimism about a potential broader market rebound. CryptoQuant analyst Axel Adler even suggested that the consolidation phase might be nearing its end.
However, Bitcoin soon retreated, falling below $60,000 and continuing to trade within a wide range. Brandt highlights that the lack of a clear trend contrasts with the optimism of some analysts who predict an imminent breakout.
The Bitcoin Megaphone Pattern
Brandt’s weekly Bitcoin chart showcases a broadening formation known as the megaphone pattern. This pattern, characterized by higher highs and lower lows, signals increasing market volatility and uncertainty.
Bitcoin’s attempt to exit its consolidation phase has resulted in the formation of this megaphone pattern. The upper boundary of the pattern is near the all-time high (ATH) of $73,835, while strong support has consistently formed in the $52,000-$55,000 range, preventing a significant downturn.
This pattern suggests that Bitcoin may continue to experience heightened volatility within this range. The key takeaway is that the market has yet to determine its next major trend.
The megaphone pattern reflects a market testing both ends of the range as traders assess the next move. Until Bitcoin breaks above the upper boundary or falls below the lower support, the consolidation phase is likely to persist.
Bitcoin Market Depth Reflects Indecision
Data from IntoTheBlock shows that Bitcoin’s average bid price across major exchanges is $59,511.60, while the average ask price is slightly higher at $59,514.07. This small difference between bid and ask prices indicates a relatively balanced market.
Strong support levels are evident around the 30% market depth mark, where there are 9.46K BTC in bids, suggesting robust buying interest that could prevent further price declines. Additional support is found at the 20% mark with 7.35K BTC.
Bitcoin On-Chain Market Depth | IntoTheBlock
On the flip side, resistance is most prominent at the 30% and 20% market depth levels, with 10.06K BTC and 7.02K BTC in asks, respectively. This significant selling interest as Bitcoin’s price approaches these levels could limit any short-term upward movement.
Brandt’s analysis, combined with current market depth data, indicates that until Bitcoin decisively breaks above the $73,835 resistance or falls below the $52,000 support, it is likely to continue trading within its current range.