US President Donald Trump gave Iran five days on Monday to reach a possible agreement. Otherwise, he stated that an operation targeting Iran’s energy infrastructure would be carried out, while the US Department of Defense mobilized to deliver the “final blow” to Iran.
With the deadline set by Trump expiring tomorrow, Bitcoin ($BTC) has been moving sideways between $67,000 and $72,000 in response to recent developments.
While Bitcoin remains stuck in a narrow range, one analyst stated that $BTC price movements indicate a medium-term correction, not a bearish flag.
Just a Correction!
Crypto analyst James Van Straten stated that Bitcoin has been stuck in a narrow and volatile trading range for approximately 50 days.
The analyst explained that $BTC has been trading sideways between $65,000 and $75,000 since hitting a low of $60,000 in early February.
While some analysts interpret this situation as a bearish flag pattern, a temporary rebound within a downtrend, and a sign of further decline, others argue that this fluctuation may be a medium-term correction rather than a full-blown downtrend.
According to the analyst, bearish flags are generally short-term formations that lead to further declines within a few days, and this doesn’t align with the current long-term situation. The consolidation has lasted for almost 50 days, which is much longer than a typical bearish flag.
At this point, the analyst suggests that the movement over approximately the 50-day period is a classic “directionless phase” where sellers are not in complete control, but buyers are also unable to actively push prices higher. Therefore, the recent price movement needs to be reinterpreted as a medium-term correction.
The analyst also stated that $BTC spent much of 2024 consolidating between $50,000 and $70,000, resulting in significant accumulation and forming a base within the range where it is currently trading. The analyst emphasized that over 600,000 $BTC accumulated within this range, indicating a stronger supply and demand structure compared to previous cycles.
*This is not investment advice.
