Next week’s US macroeconomic calendar events should bring a resolution to a handful of fear catalysts that are suppressing prices across the crypto market.
Bitcoin (BTC) traders spent a majority of the week in contention as sellers capped each price breakout at $112,000 and buyers stepped in to defend all dips to the $107,000 to $108,000 zone.
Some analysts have expressed concern at BTC’s inability to hold prices above $112,000 and its frequent revisits to the range lows, but the range compression shown by the 4-hr and daily higher lows and lower highs (candlestick chart below) could be a positive sign.
Technical analysis traders frequently point out that “compression before expansion” is to be expected as volatility drops and prices consolidate after a major market move like the Oct. 10 sell-off, which saw BTC open interest drop by 50%.
Underlying the day-to-day price action, there are some positive developments that suggest BTC will eventually make its way back into the $120,000 price zone. On Tuesday, the spot Bitcoin ETFs took in $477 million as BTC price traded to $114,000 from $107,500.
Related: Price predictions 10/24: BTC, ETH, BNB, XRP, SOL, DOGE, ADA, HYPE, LINK, XLM
Alongside these inflows, data shows spot buyers across order-size cohorts at Binance and Coinbase exchange stepping in to buy throughout the entire range from $101,500 (Binance) to the range high of this week (114,000).
Currently, Glassnode’s Bitcoin Accumulation Trend Score metric also shows a score of 0.924 and the onchain data provider explained that a “trend score closer to 1 indicates that on aggregate, larger entities (or a big part of the network) are accumulating, and a value closer to 0 indicates they are distributing or not accumulating.”
Multiple analysts agree that Bitcoin’s range consolidation could reach an end early next week, and that altcoins could begin to recover due to the US macroeconomic calendar being filled with a list of events.
This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
