Bitcoin May Face Extended Consolidation Near $115,000 as Profitability Cools, Analysts Suggest

Key Points

1. Bitcoin's consolidation phase reflects market maturity and investor caution, with price fluctuations between $115,000 and $120,000 becoming the norm.

2. Glassnode's data shows a decline in the Realized Profit to Loss Ratio from 3.9 to 2.6, signaling reduced profitability but still positive gains.

3. The $115,000 level is identified as a key support zone with significant liquidity, potentially attracting buyers if the price dips.

4. Trading volume and order book data highlight $118,000 as another pivotal level, reducing the likelihood of abrupt price swings.

5. Historical patterns suggest liquidity and volume clusters are instrumental in driving Bitcoin’s price dynamics during consolidation phases.