Bitcoin (BTC) still remains in its phase of consolidation, according to market veteran Peter Brandt, who has recently reiterated his stance.
Notably, BTC recorded a mild recovery push over the past two days, eventually recovering $61,000. This rebound reignited optimism that a broader market recovery is underway. CryptoQuant analyst Axel Adler recently suggested that the consolidation phase is close to an end.
However, Bitcoin has since traded in a range, collapsing back below $60,000. As BTC continues to trade within this broad range, Brandt points out there is no clear trend yet. This contrasts the optimism of some analysts who anticipate an imminent breakout.
The Bitcoin Megaphone Pattern
The accompanying weekly Bitcoin chart reveals a broadening formation, which he dubbed a megaphone pattern. This pattern features higher highs and lower lows and indicates increasing volatility and market indecision.
Bitcoin has formed the megaphone pattern as it attempts to break out of its current consolidation phase. The upper boundary of this pattern lies near the $73,835 level, the ATH. On the lower end, support has consistently formed within the $52,000-$55,000 range, preventing a significant breakdown.
Bitcoin Megaphone Pattern | Peter Brandt
This pattern suggests that Bitcoin could continue to experience heightened volatility within this range. Notably, the key takeaway is that the market is yet to declare its next major trend.
This megaphone pattern reflects a market that is testing both ends of the range as traders weigh the next move. Until there is a break above the upper boundary or a fall below the lower support, the consolidation phase is likely to persist.
Bitcoin Market Depth Shows Indecision
Meanwhile, according to data provided by IntoTheBlock, Bitcoin’s average bid price across leading exchanges stands at $59,511.60, while the average ask price is slightly higher at $59,514.07. This slight disparity between bid and ask prices shows a relatively balanced market.
Notably, the strongest support levels remain around the 30% market depth mark, where there are 9.46K BTC in bids. There is robust buying interest at this level, potentially preventing the price from falling further. Additional support rests at the 20% mark with 7.35K BTC.
Bitcoin On chain Market Depth | IntoTheBlock
Conversely, the resistance levels are most significant at the 30% and 20% marks, with 10.06K BTC and 7.02K BTC in asks, respectively. Notably, there is considerable selling interest as the price approaches these levels, which could cap any upward momentum in the short term.
Brandt’s analysis and the current market depth data suggest that until there is a definitive breakout above the $73,835 resistance or a breakdown below the $52,000 support, Bitcoin is likely to remain in this range-bound state.
