Bitcoin price continues to consolidate within the predetermined region, suggesting that the token may continue to exhibit repetitive price action. With year-end trading looming on the horizon, the crypto star is expected to maintain a sideways trend as the upcoming spot Bitcoin ETF is expected to have a bigger impact than the yearly close. With this, the BTC price is heading towards a decisive phase in which a minor drop could change the direction of the price movement.
In the long term, the flagship crypto continues to trade under bullish influence, but in the short term, the price hints at the possibility of an interim pullback. The candles were compressed, suggesting bullish and bearish activity, which forced the price to trade in a tight range. These ranges can be considered extremely important because a large number of BTC addresses hold a significant amount of tokens in the resistance and support zones.
According to the data provided by the analyst, Ali, Bitcoin is positioned between two critical supply walls. The support zone lies between $41,200 and $42,400, where 1.92 million addresses hold nearly 723,500 BTC. Furthermore, the resistance zone lies between $42,500 and $43,750, with 1.67 million addresses holding 706,400 BTC. Therefore, the analyst believes that a sustained close beyond these limits will help gauge the BTC trend.
Collectively, the trend suggests that a bullish breakout could be imminent, but declining volume and bullish activity could hamper the rally’s progress for some time. However, the price could still follow a nice rebound to maintain a healthy rise.
“A break above resistance could propel BTC towards $47,600, while a fall below support could lead to a correction to $38,600.”