Analysts Predict Continuation of Bitcoin’s Range-Bound Trading as BTC Begins New Cycle

Over the last week, Bitcoin has shown less price volatility, remaining between $41,700 and $43,600.

Observing the futures market shows a trend for continued low volatility in the near future.

“Open interest” in the futures market stands for the total active contracts. High open interest means more traders are interested in Bitcoin’s price movements.

Total Bitcoin futures open interest. Source: Coinglass

Crypto analyst Daan Crypto Trades mentioned the decline in Bitcoin futures open interest and suggested that price might remain stable for some time. He tweeted, “#Bitcoin Open Interest is still nowhere close to recovering what it was after last week’s flush. Price likely chopping around for a while I’m assuming.”

Analysts spot a potential trend reversal at a crucial support level

According to TradingView data, Bitcoin’s price rose to $43,600 on Jan. 16, after a dip to $41,000 on Jan. 12. The price has since been fluctuating within these two points.

The relative strength index (RSI) is at 46, suggesting a balanced volatility with both buyers and sellers contending for control.

A detailed analysis of the BTC/USD daily chart reveals that Bitcoin could be entering a new cycle, showcasing a pattern over the last 20 months that may signal a breakout.

BTC/USD daily chart. Source: TradingView

Chart analysis suggests a potential upward trend from current levels, surpassing the $43,600 mark and opening up the possibility of reaching $45,000.

A surge past the $45,000 milestone could pave the way toward the anticipated $50,000 target, marking a 17% increase from its current price.

Conversely, a close below $41,700 could indicate a bearish turn with consequential support levels at the 50-day EMA ($2,251), 100-day EMA ($39,221), and 200-day EMA ($35,000).

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