Bitcoin’s price has been consolidating within a tight bracket recently, which could lead to a record-high if it breaks out, according to Bitazu Capital founding partner Mohit Sorout.
Looking at the data from the token since the middle of the year, Bitcoin has been in a tight bracket, ranging between $10,200 USD and $11,800 USD with minimal volatility. Historically, when the leading cryptocurrency sees stability for a prolonged period of time, it breaks out in a direction. Sorout estimates that should Bitcoin hit a breakout, it will be through barriers of resistance rather than a decline. He suggests that should this happen, Bitcoin will be looking at $20,000 USD once more (the price of the cryptocurrency at the peak of its bull run in 2017) within three months.
Bitcoin breakout within 3 months if tight range continues
This time period is taken by considering data from previous trends and price cycles. Historically, Bitcoin has moved quickly in a direction after trading in a long non-volatile range. Looking at the time between May and June, Bitcoin ranged securely around $9,100 USD. After trading in a tight range, it broke out to hit a 32% rally within just twelve days of increasing values.
Calm before the storm.
— Mohit Sorout 📈 (@singhsoro) October 17, 2020
He explained that this comes from observing the trends and volatility of Bitcoin, noting:
“An observation based on how violent the rallies are after subdued periods of volatility. Could even be earlier.”
The stock-to-flow (S2F) model creator PlanB echoed the bullish sentiments, pointing towards a possible reason Bitcoin has been in a tight range recently. The anonymous expert believes that there is a bull run on the way if the charts are anything to go by:
❓Why does #bitcoin price not go up with all this institutional buying? Who is selling? BTC price is exactly where it should be, holding firm above $10K, waiting for that one moment .. asymmetrical returns .. patience! pic.twitter.com/pCyftmvHco
— PlanB (@100trillionUSD) October 16, 2020