Bitcoin has been consistently trading within a confined range, lingering for about 150 days in a $5,000 corridor. Analyst James Van Straten from CryptoSlate highlighted Bitcoin’s trading behavior, noting that it has not been able to maintain or create a significant price movement despite reaching two-year highs in 2024. The cryptocurrency fluctuated around the low $38,500 mark without establishing a firm trend.
Stable Trading Zone for Bitcoin
The BTC/USD pair has been confined to a narrow trading band, with the daily closing price tightly sticking to this range for nearly half a year as of early February. Van Straten observes that Bitcoin operates within such price bands for durations ranging from 100 to 250 days, which is in line with past behaviors of the digital currency.
Bitcoin’s Market Dynamics and Predictions
The introduction of spot Bitcoin ETFs did not lead to a notable upward price shift, causing a more subdued market outlook. As the halving event nears, which historically influences supply dynamics, the consensus is that any significant price surge may occur only after this event. Analyst Michaël van de Poppe predicts a short-term decline with a potential pre-halving rally, expecting Bitcoin to trade between $38,000 and $48,000.
In the meantime, Bitcoin’s behavior is expected to remain within the familiar price levels. While the halving event is highly anticipated for its effects on the supply, ETF products are also making an impact by pulling assets out of the market at a rate much quicker than the creation of new supply, possibly hinting at future price movements once these combined factors play out.