Bitcoin has been trapped in a relatively narrow price corridor for approximately 150 days, ranging from $40,000 to $44,999 as of February 2, 2024.
This unyielding price range has frustrated both bullish and bearish investors.
However, a recent analysis by James Van Straten, a research and data analyst at CryptoSlate, suggests that this behavior is not unusual for Bitcoin.
Van Straten’s examination of Bitcoin’s historical price movements in $10,000 increments between $10,000 and $49,999 reveals that the cryptocurrency typically spends anywhere from 100 to 250 days within these ranges.
Therefore, the current sideways movement falls in line with Bitcoin’s historical trading patterns and should be viewed as characteristic behavior rather than an anomaly.
Despite Bitcoin reaching two-year highs in 2024, as well as experiencing lows of $38,500, these price extremes have failed to trigger a sustained price trend.
Instead, BTC/USD has remained within the $5,000-wide trading range.
This behavior has persisted even after the introduction of spot Bitcoin exchange-traded funds (ETFs), much to the disappointment of market commentators.
Looking ahead, the upcoming block subsidy halving event, scheduled to occur in just over two months, has shifted market sentiment towards a belief that Bitcoin will only regain bullish momentum several months after the halving event.
READ MORE: Tech Titans Microsoft and Alphabet Soar in Q4 with AI and Cloud Advancements
Until then, it is expected that the familiar price levels will continue to define the cryptocurrency landscape.
One of the respected voices in the crypto community, Michaël van de Poppe, founder and CEO of MN Trading, maintains a consistent outlook on Bitcoin’s trajectory.
He anticipates a range-bound trend with Bitcoin trading between $38,000 and $48,000, a prediction he has held for approximately two months.
Van de Poppe also suggests the possibility of a short-term correction followed by a mild pre-halving rally, pushing Bitcoin’s price to around $48,000.
In conclusion, Bitcoin’s extended period of trading within a $5,000 price range may be testing the patience of investors, but it aligns with historical patterns.
With the block subsidy halving event looming on the horizon, market participants are bracing for a continuation of this range-bound behavior until a more substantial bullish trend takes hold in the months to come.
