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CryptoIntelligence 2024-12-08 00:57:50

Bitcoin Faces “Choppy” Price Movements Amid Consolidation With $110,000 in Target

Bitcoin’s recent climb to new all-time highs near $104,000 was followed by a sharp correction of over 10%, showcasing the volatility of the crypto market. According to on-chain analytics platform CryptoQuant, Bitcoin’s short-term price action may now enter a phase of consolidation and “choppy” movements. “The 14-day Choppiness Index is in an early zone showing corrective moves during consolidation,” wrote CryptoQuant contributor Percival in a blog post on Dec. 6. The Choppiness Index (CI) measures market conditions on a scale of 0-100. Higher values indicate more erratic or “choppy” price action, while lower values suggest trending movements. At the time of writing, Bitcoin’s daily CI was at 56.7, its highest level since mid-August, suggesting ongoing consolidation after the recent price swings. “One thing to take into account is the time factor of consolidation. In the 2020/2021 cycles, there were 20 days of downtime, and in the consolidation since March, the average decline was ~20 days,” Percival explained. “The greater the consolidation, the greater the rise.” While this period of cooling off may frustrate Bitcoin bulls, analysts predict that longer consolidation could lead to a stronger breakout. Potential BTC Targets: $110,000 and Beyond Looking ahead, CryptoQuant highlights potential price targets for Bitcoin once the consolidation ends. Percival suggests that key resistance levels will emerge at $110,000 and $120,000, based on market psychology and the realized price of short-term holders (STHs). “The first level will be $110K (+1.5 standard deviations), a considerable profit zone for STH,” he noted. “As traders connect to psychological numbers, $120K has a very impactful psychological and emotional charge, and being a value within +2 standard deviations makes this floor a deeper consolidation camp.” Bitcoin’s next major move remains to be seen, but patient bulls could be rewarded with significant price gains.