As a seasoned crypto investor with a decade of rollercoaster rides under my belt, I can’t help but feel a mix of excitement and apprehension as Bitcoin (BTC) navigates through another phase of choppy waters. The 14-day Choppiness Index (CI) is flashing warning signs, hinting at a correction after the recent surge to new all-time highs near $104,000.
Bitcoin (BTC) faces more “choppy” moves as a dedicated BTC price metric boils over.
According to findings from the on-chain analysis platform CryptoQuant, published on December 6, Bitcoin’s price movement may continue to perplex optimistic investors as it seems to be confined within a certain range rather than experiencing significant upward momentum.
Analysis: Bitcoin risks a choppy end to 2024
Bitcoin hitting new all-time highs near $104,000 this week preceded a snap crash of more than 10%.
In only 24 hours, the value of liquidations surpassed $1 billion, serving as a stark reminder to traders of the unpredictable nature and volatility inherent in cryptocurrency trading.
CryptoQuant, however, now sees a different short-term picture — boring BTC price action.
In my analysis, I’ve noticed that the 14-day Choppiness Index is indicating an early stage, suggesting potential corrective actions within a period of consolidation.
Percival showed, using the Choppiness Index, that Bitcoin’s price against the U.S. Dollar seems to be entering a calmer phase following its spike in volatility.
In simpler terms, the CI scale ranges from 0 to 100. Higher numbers suggest more volatile market conditions, while lower values indicate a market that’s trending, whether it’s moving up or down. Crossing the 60 mark from below or the 30 mark from above signals events that might catch the attention of traders who are looking for signs of a shift from choppy to trending markets, and vice versa.
Today’s Cryptocurrency Index (CI) stood at approximately 56.7 as of December 7th, based on data from CryptoMoon Markets Pro and TradingView. This value represents a new high not seen since the middle of August.
Percival noted that it’s important to consider the duration needed for consolidation. During the 2020/2021 periods, there were approximately 20 days of downtime, and since March, the typical decline has lasted around 20 days on average,” is one way to paraphrase the given text.
““The greater the consolidation, the greater the rise.””
New BTC price consolidation due at $110,000
A prolonged consolidation phase might lead to a stronger rebound later, but in the immediate future, Bitcoin optimists could experience disappointingly sluggish advancements in price movement.
When this event occurs, Percival based his potential Bitcoin price predictions on two factors: the collective sentiment within the market and the profits sought by speculative traders.
In simpler terms, if the price of a coin reaches around $110,000 or $120,000, it will mark profitable points for short-term holders (those who have held coins for up to 155 days). These levels are roughly equivalent to multiples of an indicator that measures their overall purchase price.
By examining the Realized Price of STH, we’re predicting potential zones of robust resistance you may face. The initial level could be around $110K, which represents a significant profit area for STH holders.
“As traders connect to psychological numbers, $120K has a very impactful psychological and emotional charge, and being a value within +2sd makes this floor a deeper consolidation camp.”
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2024-12-07 18:22