Bitcoin’s Price Breakout Looms: Analyst’s Insight and Target Range
A Bloomberg crypto analyst, Jamie Coutts, has shed light on a noteworthy development in the Bitcoin market.
Over the last six months, Bitcoin has been trading within a tight range of $25,000 to $31,000, with a high volume of transactions in this range. Coutts suggests that this extended stability could precede a sudden and unexpected surge in Bitcoin’s value if it breaks past $31,000. He refers to this potential surge as an “air pocket” scenario that could drive Bitcoin to $39,000.
For half a year, this asset's danced between $25k-$31k. More coins have changed hands in this tight range than anywhere else in its price distribution. This is also the longest period of compressed volatility in its history. The next phase in the breakdown of the fiat monetary… pic.twitter.com/HG0282f0M8
— Jamie Coutts CMT (@Jamie1Coutts) October 23, 2023
An “air pocket” in finance signifies a price range with low trading activity and limited positions, making it highly volatile due to a lack of liquidity.
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Currently, Bitcoin is trading at $30,971, just below the crucial $31,000 level identified by Coutts.
Coutts also noted a significant decline in Bitcoin’s active addresses (AAs), typically considered a bearish signal for Bitcoin’s price. He believes that either breaking past $31,000 or collapsing below $24,000 will offer clarity on the overall market dynamics.
In essence, Bitcoin’s prolonged consolidation in a narrow price range has captured attention, and Coutts’ analysis suggests the potential for an unexpected price surge. The decline in active addresses hints at evolving market expectations, with the $31,000 resistance and $24,000 support levels becoming pivotal points to watch.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
