Bitcoin hits $ 47,000 as analysts agree that price consolidation cannot last

Bitcoin (BTC) rebounded from new lows of $ 45,550 on Jan. 5 as analysts waited patiently for a “throttle” to trigger new volatility.

BTC / USD 1 hour candlestick chart. Source: TradingView

An analyst weighs the possibility of a “fakedown” in the direction of $ 40,000

Data from Cointelegraph Markets Pro and TradingView showed the BTC / USD pair was returning to the previous day’s levels at $ 47,000 at the time of writing on Binance.

The repeated declines have not unsettled market participants, who have now focused on the possibility of a strong upward or downward movement in the coming weeks. Volatility at a time of flat funding rates and record open interest in the derivatives markets, they said on Tuesday, is almost a given.

Bitcoin hits $ 47,000 as analysts agree that price consolidation cannot last
Bitcoin hits $ 47,000 as analysts agree that price consolidation cannot last

“I think we got into a volatility throttle at the end of the month,” predicted analyst William Clemente in part of the comments on the Bitcoin Bollinger Band chart.

Bollinger Bands, a popular indicator that Clemente recognized as one of his “favorite instruments”, use two standard deviation bands around the Bitcoin spot price to assess when volatility is likely.

BTC / USD chart with Bollinger bands. Source: William Clemente on Twitter

The question this week, however, was whether the move would be higher or lower.

“If we have the same setup in late July and an initial drop to the 40 low from a choke, I’ll definitely be a buyer,” added Clemente during a discussion on the outlook.

Another post revealed the likely cause of the drop to $ 45,550: the Unsuccessful attempt a trader who sells the lows short and then buys them back.

Bitcoin volatility index graph. Source: Coinglass

We are still in the consolidation phase

Those targeting the increase highlighted macroeconomic factors. Inflation, which is higher than expected, has not yet fully reacted to Bitcoin.

“From the perspective of the vision, we continue to expect a short-term upward movement,” wrote the trading company QCP Capital in its latest update to the subscribers of the Telegram channel.

“Looking at the 10-year hyperinflationary rate (which is historically strongly correlated to BTC), there has been a substantial divergence since late December … If BTC catches up here we could see the move towards USD 60,000”.

The consumer price index (CPI) for December will be released next week.

“BTC never looked like this when its bull cycle ended. NEVER, since its inception,” continuation an even more bullish galaxy on Tuesday.

“He always goes down hard without much recovery.”

Looking at the consolidation periods that followed the price spikes in all of Bitcoin history, Galaxy concluded that the November high of $ 69,000 couldn’t logically form a multi-year high.

“We are in a consolidation phase ahead of the next massive climb,” he added.

BTC chart with multi-year highs. Source: Galaxy on Twitter

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