Bitcoin's Volatility: Awaiting the Next Bull Run
1min read Bitcoin's recent price volatility has left investors wondering if now is the right time to buy the cryptocurrency. The token has experienced a significant drop, but a recovery has also been observed. Despite the bearish sentiment, some analysts believe that Bitcoin is poised for a major rally, similar to the one seen in 2021.
The Bitcoin price has been consolidating within a narrow range, which could indicate that bulls are gathering strength for a strong rebound. This pattern is reminiscent of the token's behavior in 2021, suggesting that a decent rebound could lead to a strong ascending trend. However, it is important to note that the volume and volatility differ from the 2021 bull run, which could pose some challenges to the rally.
The recent price drop has led to the liquidation of a large number of long positions, which may alleviate acute selling pressure for the time being. While bears appear to be exhausted, short-term traders have accumulated more than 35,000 BTC during the recent drop, preventing the price from falling below $82,000. As a result, the Bitcoin price is expected to remain consolidated for the next few days.
A popular analyst, Altcoin Sherpa, predicts that the Bitcoin price will maintain a sluggish trend for some time. The price is expected to remain within a predefined range and slowly ascend above $90,000 by the middle of the second quarter. Although the price may break above the resistance of $92,000, bears are expected to drag the levels back below $85,000. Therefore, it may be an opportune time to accumulate Bitcoin, as the price is believed to maintain an ascending trajectory and reclaim higher highs.
