- Bitcoin’s current price movement suggests it has entered what’s being termed as ‘chop season’.
- This period is characterized by sideways trading without any significant upward or downward trend.
- Financial analysts, including ShardiB, have highlighted the stagnant nature of Bitcoin’s price performance recently.
Understand what ‘chop season’ means for Bitcoin and why analysts are predicting prolonged sideways movement before the cryptocurrency makes significant gains.
How “Chop Season” Impacts Bitcoin’s Price Action
ShardiB, a prominent crypto analyst, has termed the current phase as ‘chop season,’ indicating a time of minimal price changes where Bitcoin fluctuates within a narrow range. Despite multiple attempts, Bitcoin has failed to break out of this range, indicating potential extended sideways trading.
The persistence of this trend could last for several months, with ShardiB advising crypto investors to consider holding onto their Bitcoin rather than making hasty trading decisions that could result in losses.
Bitcoin’s consolidation phase post-halving has shown repeated failures to sustain levels above $70,000. Michael van de Poppe, another respected analyst, believes that Bitcoin needs to break out of its current price range to initiate a bull run and achieve new all-time highs.
Analyst Rekt Capital added that Bitcoin is on the verge of a parabolic phase, which could be triggered by a weekly close above $69,000. However, this seems improbable at present as Bitcoin’s price has recently dropped to $67,000.
Past market cycles imply that Bitcoin may not enter this parabolic phase for several more weeks, as evidenced by historical data.
Meanwhile, Arthur Hayes, co-founder of BitMEX, predicted that ‘chop season’ could extend until August, with Bitcoin fluctuating between $60,000 and $70,000 during this period.
Possible Imminent Breakout for Bitcoin
In a recent social media update, analyst Mikybull Crypto suggested that Bitcoin could break out of its current range sooner than the market anticipates. His analysis pointed to a broadened wedge pattern on the daily chart, indicating a breakout is on the horizon.
Mikybull Crypto’s target for this breakout is set at $85,000, a significant upward movement if it materializes.
BitQuant, another crypto analyst, echoed these sentiments, suggesting that Bitcoin is poised for a major move similar to its previous climb to $73,000 in February and March. His analysis points to a potential target of $92,000.
Conclusion
While Bitcoin remains in a period of sideways trading known as ‘chop season,’ analysts are divided on the duration and potential breakout targets. Investors are advised to prepare for both possibilities: extended consolidation or an imminent significant upward shift. By understanding these dynamics, investors can make more informed decisions amid the cryptocurrency’s volatile market.
