The boring ZONE!

Hello!

If you have been following Bitcoin price action the last months, you already know how boring it feels. We are moving inside a range, up and down, without a clear breakout. Many traders are losing patience, and some start to say that maybe Bitcoin is “dead again.” But for me, this type of behavior is typical before the big move comes.

The chart shows perfectly this situation.
Every attempt to break higher has been rejected, and every drop has found support. It is like Bitcoin is trapped in a box, and we are just bouncing inside. For the short-term speculator, this looks painful. Volatility is low compared to Bitcoin history, and this brings the impression that nothing is happening. But we know that behind the scenes, accumulation is still going on.

Whales, institutions, ETFs, even Tether, continue to buy. They don’t care if Bitcoin stays at this level for weeks, because they have a longer vision.

I see this range like a spring being compressed. The more time we stay here, the stronger the breakout can be when it finally comes. Patience is required, but history shows that Bitcoin never stays quiet for too long. And usually, after long periods of consolidation, the direction tends to be up.

Image from Cointelegraph.

I also think that the macro situation will help Bitcoin. Rate cuts are starting, inflation is still alive, and fiat currencies are being printed at crazy levels. People will search for protection, and Bitcoin is the digital solution. When liquidity comes back to markets, Bitcoin usually is the first to react.

So yes, the range is boring. Many will capitulate and leave, looking for excitement somewhere else. But I bet that eventually Bitcoin will break higher, and those who stayed patient will be rewarded. The time of boredom can transform very quickly into excitement, and from these ranges is where the real bull legs start.

Enjoy your weekend!

Posted Using INLEO