Bitcoin Poised for Major Move as Monthly Range Narrows, Analyst Says
Popular trader and analyst Daan Crypto Trades has highlighted a potentially decisive moment for Bitcoin, urging traders to watch the current monthly high and low closely.
According to his analysis, the price action is nearing a critical juncture where a breakout is likely to trigger a strong directional move.
Daan points out that historically, Bitcoin does not stay within such a tight monthly range for long. The current total displacement — the difference between the monthly high and low — is just 10.3%.
He notes that in the past four years, Bitcoin has always exceeded this percentage before a month’s end, making it unlikely that the current levels will hold.
“The odds strongly favor a trending month the moment either of these levels is broken,” he explained. This implies that a breach of either the monthly high or low could lead to increased volatility and a continuation of trend momentum in that direction.
For traders looking to capitalize on the upcoming move, Daan suggests that momentum strategies may perform well, especially once a confirmed breakout occurs. “The market likely extends further upon a break of either of these two,” he wrote, adding that such setups offer potentially profitable entries for those looking to ride the next wave.
With Bitcoin currently hovering in a compressed trading zone, all eyes are now on whether bulls or bears will take the lead — and when.
Kosta Gushterov
Reporter at Coindoo
Kosta joined the team in 2021 and quickly established himself with his thirst for knowledge, incredible dedication, and analytical thinking. He not only covers a wide range of current topics, but also writes excellent reviews, PR articles, and educational materials. His articles are also quoted by other news agencies.
