Bitcoin Price Analysis: Modest Volatility Expected as Market Anticipates Bottom by Month’s End
Bitcoin (BTC) experienced modest volatility around Tuesday’s Wall Street open, with price analysis suggesting a potential market bottom by the end of the month. The cryptocurrency’s price action has been characterized as being in a “period of anticipation” rather than an immediate breakout or distribution phase.
Key Takeaways:
- Bitcoin is expected to be safe from new local lows for the current US session, but the week is still anticipated to be volatile.
- Analysis using the Wyckoff method calls for a sub-$80,000 swing low on Bitcoin before February.
- Bitcoin price momentum analysis from on-chain analytics platform CryptoQuant is cautiously optimistic, indicating a moderately higher closing price compared to the opening price.
Bitcoin Price Holds Steady Above $87,000
Data from TradingView showed a trip to $88,315 for BTC/USD before it retraced the move to head lower.
BTC/USD one-hour chart. Source: Cointelegraph/TradingView
Keith Alan, co-founder of trading resource Material Indicators, offered some hope in the form of a buy signal from one of the latter’s proprietary trading tools. “A new Trend Precognition signal on the $BTC Daily chart does not necessarily mean Bitcoin will test resistance today,” he wrote in an X post.
BTC/USD one-day chart. Source: Keith Alan/X
Wyckoff Analysis Sees “Spring” Event Next
Using Wyckoff analysis, commentator MartyParty saw a key long-term swing low, known as the “spring,” occurring on BTC/USDT around the same time. An accompanying chart warned that this could take the pair below $80,000.
BTC/USDT one-hour Wyckoff schematic Source: MartyParty/X
As volatility cooled across macro assets, Bitcoin price momentum analysis from on-chain analytics platform CryptoQuant was cautiously optimistic. “Data from Binance shows that daily price momentum is positive at approximately $1,676, with a momentum of 1.93%, indicating a moderately higher closing price compared to the opening price,” contributor Arab Chain wrote in a “Quicktake” blog post.
Bitcoin daily momentum and volatility tracker (screenshot). Source: CryptoQuant
Read the original article at Cointelegraph.
