The crypto market shows promising signs as Bitcoin edges closer to another potential breakthrough moment. Technical analysis suggests BTC’s current trading pattern mirrors previous successful rallies from the past year.
Market experts point to recurring consolidation phases that historically precede upward movements. Recent price action indicates Bitcoin may be preparing for its next major move. This pattern recognition comes at a crucial time as investors monitor BTC’s behavior around key resistance levels.
Bitcoin’s Range-to-Breakout Cycle
Crypto analyst Mags (@thescalpingpro) noted a recurring pattern in Bitcoin’s price action since its $15.5k bottom. According to the analyst’s tweet, Bitcoin has entered its sixth consolidation range in this cycle. Each range typically features sideways price action, brief fakeouts, and an eventual breakout to the upside.
#Bitcoin – Don’t miss the bottom again! BTC has entered the 6th range of this cycle. Since the $15.5k bottom, every leg up has been followed by a consolidation range.Each range = sideways price action, fakeouts (both sides), then a breakout.We’re now in the 6th range, and… pic.twitter.com/lbYs6w4oa7
— Mags (@thescalpingpro) January 9, 2025
The cycle began in late 2022 and has consistently delivered higher highs, with Bitcoin’s price climbing steadily. Mags emphasized that Bitcoin’s previous ranges varied in duration, lasting between 7 to 30 weeks. The ongoing sixth range has lasted seven weeks so far. Historical patterns suggest that a breakout might follow, continuing Bitcoin’s bullish trajectory.
Understanding Range Durations and Trends
Mags highlighted the importance of tracking the duration of consolidation phases. Range 3, for instance, spanned 30 weeks, while others, like Range 4, lasted just nine weeks. Despite these variations, the outcome has been consistent—higher price levels post-breakout.
The tweet further pointed out a clear trend of higher lows across these ranges. This pattern underscores Bitcoin’s strong bullish momentum, suggesting that the cryptocurrency remains resilient even during consolidation periods.
Read also: Can Kaspa (KAS) Price Still Reach $1 in This Bull Cycle?
Key BTC Levels to Watch
In Range 6, Bitcoin’s price hovers near $93,942, with support and resistance levels playing pivotal roles. The lower boundary, near $90k, acts as a critical support zone, while the upper boundary, around $103k, is the resistance to break. A confirmed breakout above this level could signal the start of another rally.
However, traders should remain cautious about potential fakeouts. Mags warned that temporary breaches of these levels could mislead market participants, as seen in previous ranges.
While the analysis suggests optimism, Mags acknowledged the possibility of deviations from the established pattern. A failure to break out could lead to a deeper correction, temporarily halting Bitcoin’s upward momentum.
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