Bitcoin Poised for Major Move as Monthly Range Narrows, Analyst Says

According to his analysis, the price action is nearing a critical juncture where a breakout is likely to trigger a strong directional move.

Daan points out that historically, Bitcoin does not stay within such a tight monthly range for long. The current total displacement — the difference between the monthly high and low — is just 10.3%.

He notes that in the past four years, Bitcoin has always exceeded this percentage before a month’s end, making it unlikely that the current levels will hold.

“The odds strongly favor a trending month the moment either of these levels is broken,” he explained. This implies that a breach of either the monthly high or low could lead to increased volatility and a continuation of trend momentum in that direction.

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For traders looking to capitalize on the upcoming move, Daan suggests that momentum strategies may perform well, especially once a confirmed breakout occurs. “The market likely extends further upon a break of either of these two,” he wrote, adding that such setups offer potentially profitable entries for those looking to ride the next wave.

With Bitcoin currently hovering in a compressed trading zone, all eyes are now on whether bulls or bears will take the lead — and when.

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