bitcoin is trading in a tight range between $59,000 and $60,000 for the fifth day in a row, a quiet stretch that some analysts warn is more dangerous than it seems due to where it is happening.
The scope itself is normal. Bitcoin spent much of 2024, from March to October, consolidating between $55,000 and $70,000, with occasional breakouts in both directions. What makes the current setup riskier is its location, Alex Kuptsikevich, chief market analyst at FxPro, said in an email to CoinDesk.
This band is below the levels that caused bounces in February and earlier this month, as well as the 50-day and 200-day moving averages. Traders are closely watching the two averages and both are sloping downwards at the moment, indicating a bearish bias.
And that is the signature of a bearish trend rather than the market building a base from which to rise.
“This is a pretty dangerous consolidation for bulls,” Kuptsikevich said, noting that the 2024 version formed in a rising market, while this one is forming in a falling one. If the pattern breaks down instead of resolving up, he said, the next significant step down is around $40,000.
Some on-chain indicators suggest the same. Pseudonymous CryptoQuant analyst Darkfost pointed to signs that long-term holders are starting to capitulate or sell at a loss. In past cycles, this phase has marked attractive entry points for buyers, even when it signals short-term pain.
