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Some analysts believe bitcoin prices are on the verge of a major breakout.
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Bitcoin prices have been in a slump recently, hovering inside a narrow range for several weeks. According to CoinDesk data, the digital currency has been stuck between $30,000 and $42,000 since late May.
Despite this, some market analysts believe the digital currency is not only primed to break free of its present range, but may also experience significant upside.
[Editor’s note: Investing in cryptocoins or tokens is extremely risky, and the market is mainly unregulated.] Anyone thinking about it should be aware that they could lose their entire investment.]
The CEO of payments provider BCB Group, Oliver von Landsberg-Sadie, recently spoke about this.
He told CoinDesk, “All the on-chain analysis says we’re at the tight end of a slingshot.”
“It’s quiet now, but don’t think that means there’s no interest.”
Gains that might be ‘explosive’
Scott Melker, the host of The Wolf Of All Streets Podcast and a crypto investor and analyst, added his two cents.
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“Bitcoin pricing has been consolidating for over 8 weeks in a tight range between 42K and 30K, with diminishing volume and volatility,” he said.
“The higher the predicted expansion when volume and volatility return, the longer an asset’s price consolidates. We’ve seen this countless times with Bitcoin, therefore the next move is expected to be explosive “Melker stated.
“On-chain analysis shows that supply is shifting from impatient speculators to Bitcoin whales with enormous wallets, with fresh wallets selling and older, larger wallets buying,” says the report.
“Theoretically, this means that the smart money is stockpiling ahead of the next major upward rise.”
Jake Wujastyk, TrendSpider’s principal market analyst, expressed a different viewpoint, saying: ” “In the short run, you may disagree. I believe the current tension is to the downside, as people that hold Bitcoin must capitulate in order for the price to reset.”
“The anchored VWAP from the covid lows hints to a short-term level of $27k to watch.”
“We are entering one of the poorest months of the year next month, based on historical seasonality, with only a 20% win rate for August over the last 5 years,” he noted.
Probability Analysis
A third viewpoint was provided by Jeff Dorman, chief investment officer of asset management Arca.
“Bitcoin is a one-of-a-kind binary option. It’s either worth next to nothing, or it’s worth at least $10 trillion (approximately $500k/BTC) “he explained.
“Everything in between is merely a route function based on the increased or decreased probabilities and timing of striking either of these extremes,” says the author.
“Those possibilities rose earlier this year as inflation talk increased, corporate treasurers bought, and Elon Musk provided retail traders confidence,” Dorman said.
“Those chances have dwindled in the last three months as Elon withdrew, ESG fears arose, and China retaliated,” he said.
“Traders may talk about ‘stress’ and ‘breakouts’ all they want, but it’s all useless when compared to how you estimate probability.” Disclosure: I own bitcoin, bitcoin cash, litecoin, ether, and EOS./nRead More

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