By Chris Hollingworth 
Bitcoin (BTC) has been trading within a wide range of $76,600 to $87,500 since March 11, showing signs of consolidation. Technical and on-chain indicators suggest that this consolidation phase may persist for some time, raising the question of when Bitcoin will break out of this multi-week range.
To potentially end the consolidation phase, Bitcoin needs to reclaim the key level of $90,000. Without surpassing this level, the cryptocurrency may continue to consolidate within its current range, as noted by a prominent crypto analyst. Market analyst Daan Crypto Trades highlighted the choppy price action of BTC since March 11, emphasizing the importance of regaining the previous range above $90,000 to shift sentiment and momentum in favor of bulls.
Echoing similar sentiments, analyst Jelle mentioned that Bitcoin’s consolidation cycle could endure until it breaks above $90,000, indicating that a breakthrough above this level would be highly optimistic for the market. Rekt Capital, another analyst, emphasized the significance of Bitcoin producing a weekly close above $88,000 to confirm a potential breakout towards $93,500, drawing parallels to previous price action in 2021.
Furthermore, indicators such as Bitcoin funding rates and decreasing open interest in its futures markets suggest potential choppy price action ahead. With funding rates hovering around 0%, reflecting market indecisiveness, the cost of holding positions is minimal, reducing pressure on traders to exit long or short positions. This situation could stabilize Bitcoin’s price in the short term, leading to continued consolidation or potentially signaling accumulation before a rally.
The anticipation of a breakout in Bitcoin’s price is further supported by the tightening Bollinger Bands conditions. The weekly Bollinger Bandwidth is at an extremely oversold level, indicating a potential imminent breakout as the bands constrict. This tightening of Bollinger Bands suggests that a significant price movement may be on the horizon for Bitcoin.
Overall, the current market conditions point towards a continuation of Bitcoin’s consolidation phase until key resistance levels are breached. Traders and investors are closely monitoring these technical indicators and price levels for potential clues on the next direction of Bitcoin’s price movement.
