Bitcoin Consolidation Phase: Why Chop Is A Normal Aftermath Of Extreme Volatility

Following a period of intense volatility and a significant price movement, Bitcoin’s market is now experiencing a predictable consolidation phase, characterized by what traders call intraday ￰0￱ is not a sign of weakness but rather a natural and often necessary stage in any market cycle. A Necessary Foundation For The Next Move In an X post, a dedicated crypto enthusiast, Uniswap Gems, provided a clear-eyed view of Bitcoin’s current price action, stating that the market is in a predictable phase of intraday chop after a period of extreme ￰1￱ Reading: Countdown To ‘Bitcoin Bottom Day’: Why September 21 Could Change Everything Uniswap Gems noted that the recent huge, volatile move caught many traders off ￰2￱ a result, the market is now in a period of ￰3￱ chop is a sideways price movement within a tight range, which is often needed to establish a solid bottom after a sharp price ￰4￱ cautions that this phase could last for the next 2 to 3 days, making it a difficult environment for those looking for quick directional ￰5￱ a bullish trend to resume, BTC needs to flip $113,000 into a support ￰6￱ this happens, it could set the stage for a retest of the $115,000 range.

However, if BTC fails to hold its current levels and makes new local lows, Uniswap Gems expects a more significant drop all the way down to sub $105,000, which would be a decisive move to the ￰7￱ Philakone, a crypto investor and day trader, has issued a stark reminder about the inherent volatility of BTC and historical price action in bear ￰8￱ analysis focuses on the severe drawdowns that have consistently followed previous all-time ￰9￱ to Philakone, BTC price has a historical tendency to drop between 75% to 85% from its peak during a bear ￰10￱ is a crucial point that he believes many people struggle to grasp, especially after a prolonged bull run.

However, if BTC’s all-time high for the current cycle reaches $125,000, a 75% drop would bring the price down to a mere $30,000. Market Still Fragile Despite Heavy Liquidations Crypto trader known as KillaXBT has adopted a highly cautious stance on the BTC ￰11￱ the first time in a while, the expert is fading this BTC dip despite a massive liquidation event of 1.5 ￰12￱ decision is based on a technical analysis of a key market indicator of the USDT dominance ￰13￱ Reading: Bitcoin Price Retreats Lower Again – Is This Just a Healthy Dip? KillaXBT explains that the USDT. D (Tether Dominance) chart is showing concerning ￰14￱ it breaks above its Equal Highs (EQHs), it could lead to a bigger drop in ￰15￱ to this analysis, he has decided not to open any position in the market and is not looking for either long or short ￰16￱ image from Pixabay, chart from ￰17￱