Bitcoin has suddenly gone quiet.
It’s up 1% after falling 1% yesterday but zoom out and it’s been flat since February 15.
Bitcoin daily
Now what stands out on that chart isn’t a week of flat trading but the big run-up since February 6. A period of consolidation is normal following a big move but it’s a particularly narrow range.
I look back at the period in late-January/early-Feb as similar. It took 11 days to break that range but when it did, the result was a $10,000 one-way move. I would expect something similar when this range finally breaks.
For the bulls, I would say it’s a moderate concern bitcoin could ride on the big rally in the Nasdaq today. There has been a high correlation between BTC and NQ but it may only take a nudge to send it soaring.