Bitcoin’s price remained in a tight range on Monday, continuing a trend that has persisted since November.
Bitcoin (BTC) was trading at $96,500, where it has hovered for the past few days. The price is about 12% below its highest level this year.
Bitcoin has wavered amid concerns that the Federal Reserve will maintain a hawkish stance as inflation remains high. Last week’s data showed that the headline consumer price index rose to 3.0% in January, marking its highest level in months.
The labor market also showed strength, with the unemployment rate falling from 4.2% in December to 4.1% in January. A combination of high inflation and low unemployment suggests that the Fed will not rush to cut interest rates.
Bitcoin’s price has also remained range-bound as crypto investors stay on the sidelines. A key example of this is the performance of spot Bitcoin ETFs, which have seen outflows totaling millions of dollars over the past two weeks.
Bitcoin price technicals point to a surge
BTC’s technical indicators suggest that Bitcoin may have further upside once this consolidation phase ends. A key factor is that Bitcoin has consistently held above the crucial support level at $90,560 in recent weeks.
Additionally, Bitcoin has remained above the 50-week and 100-week moving averages—historically a bullish signal in trend analysis.
BTC has also formed a cup and handle pattern, with its upper resistance level at $68,720. The depth of this formation is approximately 78%, indicating a potential rebound to over $122,000.
Moreover, Bitcoin has developed a bullish flag chart pattern, characterized by a long vertical rally followed by consolidation. These technical indicators suggest a strong bullish breakout in the longer term. One analyst, citing the bullish flag pattern, predicts a potential surge to $148,000.
