Bitcoin on the brink: Is a “big move” imminent?

The state of bitcoin (btc) price action over multiple time periods has analysts on the edge of their seats. As of February 7, several technical formations suggest that the leading cryptocurrency appears poised for a critical breakout of the current consolidation.

Is bitcoin preparing for a big move?

Carrying X, magazines think A “big move” awaits bitcoin, considering the arrangement of the candles on the weekly chart. The analyst points out that prices have moved horizontally in the last nine weeks, falling within the expected range.

The bitcoin market has fluctuated between 8 and 30 weeks in the past. So far, the current consolidation has lasted nine weeks. Amid this, bitcoin prices have tested both sides of the range with notable “fakes.”

In light of the current situation in the bitcoin market, Mags is confident that the prolonged consolidation suggests that the coin, guided by history, could rise further.

Beyond the market range, another analyst grades that bitcoin's 3-day Bollinger Bands, a technical indicator that measures volatility, are narrowing. The contraction, the trader notes, is at historic levels, often followed by a breakout. However, as things stand, it remains uncertain how prices will evolve in the coming weeks and months.

Adding to the intrigue, Jason Goepfert on X points The S&P 500, a stock index, is currently 0.35% away from its three-year high. The bullish trend is clear even though less than half of all stocks that make up the index are trading above their 10-day moving average.

At the same time, less than 60% are above its 50-day moving average and less than 70% are above its 200-day moving average. This rare confluence suggests that the financial market could be at a critical inflection point, possibly impacting cryptocurrencies.

Eyes on spot ETF issuers and the US Federal Reserve

Only time will tell if bitcoin will recover or plummet from spot rates. What is evident, however, is that bitcoin's bullish trend remains clear, and fundamentals are lining up to support optimistic bulls. As an example, spot bitcoin ETF issuers are buying more coins in the market. At the same time, the excitement around the upcoming bitcoin halving event is adding fuel to the optimism.

The broader market is also watching the US Federal Reserve. The market consensus is that the central bank will sharply cut interest rates in March 2024 and embark on quantitative easing. With more money circulating, some will find their way into bitcoin, driving prices to all-time highs of $69,000 or more in the coming months.