Bitcoin price continues to consolidate within a predetermined region, suggesting that the token may continue to see repetitive price movements. With year-end trading just around the corner, the star cryptocurrency is expected to maintain a sideways trend, with the upcoming spot Bitcoin ETF expected to have a bigger impact than the year-end close. This takes BTC price towards a decisive phase where a slight decline could change the direction of price movement.
In the long term, the flagship cryptocurrency will continue to trade under bullish influence, but in the short term, the price is flashing the possibility of an intermediate downside. The candles compressed, suggesting bull and bear activity, forcing the price to trade in a narrow range. These ranges can be considered very significant as a huge number of BTC addresses have significant amounts of tokens in resistance and support areas.
According to data provided by analysts, Ali, Bitcoin sits between two important supply walls. The support zone is between $41,200 and $42,400, with 1.92 million addresses holding nearly 723,500 BTC. Moreover, the resistance zone is between $42,500 and $43,750, with 1.67 million addresses holding 706,400 BTC. Therefore, the analyst believes that sustained closes above these boundaries will help gauge BTC’s trend.
Taken together, these trends suggest a bullish breakout is imminent, but lower volume and bullish activity could hinder the rally’s progress for some time. However, the price may continue with a further subtle bounce to maintain a healthy upward trend.
“A break above the resistance line could push BTC up to $47,600, while a fall below the support line could lead to a correction towards $38,600.”