The price of Bitcoin has been consolidating within a tight range for several months.
Since July 2020, Bitcoin has been ranging between $10,200 and $11,800, a 15% range.
When Bitcoin stays stable for a long time in a tight price range, a major price movement typically occurs.
Why three months for a Bitcoin all-time high following a breakout?
Based on previous price cycles, Bitcoin tends to move fast after existing a long-range.
From May 1 to July 20, Bitcoin ranged between $8,800 to $9,800, stabilizing at around $9,100.
After two months of consolidation, it took BTC 12 days to record a 32% rally to $12,123 on Binance.
According to Sorout, a price increase towards $20,000 could happen even earlier than three months.
A strong narrative around a Bitcoin bull cycle heading into 2021 remains the recent upsurge of institutional demand.
Institutions that have been acquiring Bitcoin, like Square and MicroStrategy, said they perceive Bitcoin as a potential treasury asset.
Calm before the storm? Analyst says $20K Bitcoin possible in 3 months
Published on Oct 17, 2020
by Cointele | Published on Coinage
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