Bitcoin (BTC) is witnessing a significant price movement at the beginning of the new month and quarter, according to new data reported today by market analyst Daan.
Over the past week, the digital asset moved within a tight pattern of $100,000 and $108,000, displaying a narrow but substantial retreatment phase within a wider uptward momentum.
Bitcoin Consolidates Around $100k and $108k
The market analyst identified a common trend in the volatile cryptocurrency market at the beginning of a new month and quarter. As per data reported by Daan, BTC is currently moving in a specific pattern and channel, consolidating between the significant support level of $100,000 and the resistance level of $108,000.
This shows that the digital asset is a period of pause in the market, where both sellers and buyers are in equilibrium as they don’t have adequate power to push the price substantially in one particular direction.
As per the metrics from the analyst, a new month and quarter (like this time) normally brings an “unsteady beginning,” a common pattern in digital asset markets. This phenomenon typically happens this way due to asset reallocation. Fund managers and institutions normally restructure their investments when a quarter ends, an event that triggers short-term corrections.
BTC Demand Down
Over the past month, BTC recorded a slight price rise as its value has been up 1.3% and 2.7% over the past week and 30 days, respectively. Despite registering slight gains over the period, the dominant digital asset is witnessing an absence of demand, suggesting a wider market is retreating. This phenomenon could trigger a price decline in the short term.
As per today’s post shared by CryptoQuant analyst Crayyblockk, BTC’s new market demand is failing to swallow the cumulative selling pressure from long-term traders and supply from newly minted Bitcoin. Due to this interplay, Bitcoin’s market demand has turned negative.
From a technical perspective, Bitcoin’s RSI currently stands at 50, indicating a neutral balance between bearish and bullish positions, suggesting a consolidation momentum.
This correction phase presents opportunities to long-term investors as it is now a perfect time to acquire BTC before an imminent directional price movement. For short-term traders, this current phase means that immediate robust directional price movements are unlikely; therefore, patience is needed.
