The trend of the Bitcoin market may be close to a major change, according to the latest analysis shared by CryptoQuant analyst Percival.
Percival described Bitcoin’s current phase as “chopsolidation,” a term used to describe a short period of vertical movement in which price consolidation occurs without a clear trend.
This time, he suggests, may be near, as a near-term market move is expected in the coming weeks. The Chopsolidations metric, as Percival noted, does not predict the direction of Bitcoin’s next move.
Instead, it examines the exhaustion level of the current trend, helping to determine whether the Bitcoin price is due for a reversal or continuation. Percival’s analysis highlights that while there are signs of strength in various areas, the market remains divided on the future direction of Bitcoin.
So far, some investors believe that the recent rally is enough to push Bitcoin past its peak, while others are expecting a cautious higher move or a potential correction.
Examining Bitcoin’s Support Levels and Potential Price
Percival’s analysis also points to two important periods in September and October where Bitcoin established significant levels of support, marked by short but significant areas of price stability.
These areas, which he identified as the orange areas on his chart (shared above), served as points where the price of Bitcoin “reloaded” – essentially, places where demand was strong enough to temporarily halt the price decline.
With the current price moving close to these support levels, Percival suggests that the market may find a new low if Bitcoin faces any short-term downward pressure. This support could form the basis for an upward move in the coming weeks.
The Chopsolidations indicator, according to CryptoQuant analyst analysis, shows signs of readiness for a strong trend based on weekly and monthly readings.
While he did not specify a specific directional bias, he noted that current market forces could be enough to drive the price of Bitcoin higher if additional demand or a favorable macroeconomic environment aligns with market sentiment.
This trend may play out in the short term, when sufficient market activity may raise the value of Bitcoin.
Bitcoin’s Continued Struggle to Make Big Moves
Until now, the price of Bitcoin has continued to face difficulties to make a significant step, especially at the top. Instead, the stock has seen a sort of lull in volatility following its recent dip below the $70,000 price point.
In particular, at the time of writing, the asset is currently trading at $ 68,721 – the price region BTC has remained stable in the last 3 days since its recent decline.
The featured image was created with DALL-E, a Chart from TradingView
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