Following a period of intense volatility and a significant price movement, Bitcoin’s market is now experiencing a predictable consolidation phase, characterized by what traders call intraday chop. This is not a sign of weakness but rather a natural and often necessary stage in any market cycle. A Necessary Foundation For The Next Move In an X post, a dedicated crypto enthusiast, Uniswap Gems, provided a clear-eyed view of Bitcoin’s current price action, stating that the market is in a predictable phase of intraday chop after a period of extreme volatility. Related Reading: Countdown To ‘Bitcoin Bottom Day’: Why September 21 Could Change Everything Uniswap Gems noted that the recent huge, volatile move caught many traders off guard. As a result, the market is now in a period of consolidation. This chop is a sideways price movement within a tight range, which is often needed to establish a solid bottom after a sharp price swing. He cautions that this phase could last for the next 2 to 3 days, making it a difficult environment for those looking for quick directional trades. For a bullish trend to resume, BTC needs to flip $113,000 into a support level. If this happens, it could set the stage for a retest of the $115,000 range. However, if BTC fails to hold its current levels and makes new local lows, Uniswap Gems expects a more significant drop all the way down to sub $105,000, which would be a decisive move to the downside. Analyst Philakone, a crypto investor and day trader, has issued a stark reminder about the inherent volatility of BTC and historical price action in bear markets. His analysis focuses on the severe drawdowns that have consistently followed previous all-time highs. According to Philakone, BTC price has a historical tendency to drop between 75% to 85% from its peak during a bear market. This is a crucial point that he believes many people struggle to grasp, especially after a prolonged bull run. However, if BTC’s all-time high for the current cycle reaches $125,000, a 75% drop would bring the price down to a mere $30,000. Market Still Fragile Despite Heavy Liquidations Crypto trader known as KillaXBT has adopted a highly cautious stance on the BTC market. For the first time in a while, the expert is fading this BTC dip despite a massive liquidation event of 1.5 billion. His decision is based on a technical analysis of a key market indicator of the USDT dominance chart. Related Reading: Bitcoin Price Retreats Lower Again – Is This Just a Healthy Dip? KillaXBT explains that the USDT.D (Tether Dominance) chart is showing concerning signals. If it breaks above its Equal Highs (EQHs), it could lead to a bigger drop in price. Due to this analysis, he has decided not to open any position in the market and is not looking for either long or short trades. Featured image from Pixabay, chart from Tradingview.com
