empty
InstaForex - Official partner of Dragon Racing
InstaForex - Official partner of Dragon Racing
This section is designed for those who are just starting their trading journey. InstaForex educational and analytical materials will meet your training needs. Our experts' recommendations will make your first steps to trading success simple and clear.
Start as Beginner
How to start trading
Useful information
Training and recordings
InstaForex innovative services are an essential element of productive investment. We strive to provide our clients with advanced technical capabilities and make their trading routine comfortable as we are recognized as the best broker in this regard.
Become Investor
PAMM System
ForexCopy System
Passive investments
Partnership with InstaForex is beneficial and top-tier. Join our affiliate programs and enjoy bonuses, partner rewards, and the possibility to travel with the team of the world-renowned brand.
Become Partner
Main Page
Partner Area
Advantages for Affiliates
Registration
This section contains the most lucrative offers from InstaForex. Receive bonuses when topping up an account, compete with other traders, and get real prizes even when trading in a demo account.
All Promo Campaigns
Bonuses
Contests
Events
Holidays with InstaForex are not only pleasant but also useful. We offer a one-stop portal, numerous forums, and corporate blogs, where traders can exchange experiences and become successfully integrated into the Forex community.
Full details
Forums
We are in social networks
Forex humour
Forex Portal
InstaForex is an international brand created in 2007. The company provides services for online FX trading and is recognized as one of the world's leading brokers. We have won the trust of more than 7,000,000 retail traders, who have already appreciated our reliability and focus on innovations.
Learn More
History
Why Choose Us
InstaSport
Regulation
Company News
Awards
InstaForex Stars
InstaForex Offline
Headquarters
Key documents
Social Responsibility
07.02.2024 07:19 PM
What happens during Bitcoin consolidation, and how will it affect the cryptocurrency price?
Open trading account Open demo account

Over the past one and a half weeks, Bitcoin has been within a narrow range of fluctuations between $40.5k and $43.3k, trapped between two key levels. During this period, the cryptocurrency has not undergone powerful price movements, which is a direct consequence of the recent decisions of the Federal Reserve and U.S. macroeconomic statistics. Despite low trading activity and minimal price movement, the BTC network is actively used for transactions.

This image is no longer relevant

In addition, some processes are minimally reflected in price charts, but their impact will significantly increase in the near future. There is also a gradual narrowing of the already narrow range of fluctuations, which in the short term will lead to a spike in volatility and a shift in the price range in one direction. The scenarios for the price movement of BTC remain unchanged, as the forces of bulls and bears are roughly equal, and therefore, it is fundamental factors that can disrupt the balance of power.

Fundamental Factors

The Federal Reserve's monetary policy is one of the key factors influencing Bitcoin quotes. At the last meeting, the agency remained committed to its policy, stating that interest rates would not be lowered in the first half of 2024. A stable level of inflation, as well as a strong labor market and overall consumer activity, indicate that achieving the target of 2% for CPI will take more time than investors had hoped.

This image is no longer relevant

Against this backdrop, the majority of investors and traders expect the Federal Reserve to leave the interest rate unchanged at the March meeting. However, markets are confident that monetary policy easing will occur in May, as indicated by CME FedWatch statistics. At the same time, BBG analysts are confident that the Federal Reserve will not ease the rate until June 2024. If the latter are correct, the markets can expect another stage of disappointment and a decrease in investment activity.

This image is no longer relevant

Despite the pessimistic fundamental background, different categories of investors continue to accumulate BTC. It has been reported that the head of MicroStrategy, Michael Saylor, has acquired another 850 BTC at an average cost of $43,700. BlackRock is also keeping up and increasing its balance of BTC coins to 75,702 for spot ETF. Looknode analysts note that the number of wallets with a balance of 1,000+ BTC has been growing since January 22, indicating sustained interest in Bitcoin.

BTC/USD Analysis

As of February 6, Bitcoin attempted to settle above $43.4k; however, the price was subsequently rejected towards the psychological round mark. It is worth noting that this process occurred without a significant increase in long positions, indicating low buying volumes. As of February 7, cryptocurrency quotes stabilized near the $42.8k level, with daily trading volumes around $20 billion.

This image is no longer relevant

The bullish idea, in which Bitcoin manages to establish itself above $45k and update the local high, remains relevant. The bearish idea, in which the asset breaks the $40.5k level and continues its downward movement with the target of breaking $40k, has also not lost its relevance. The wedge pattern forming on the daily chart can serve as an impetus to create conditions for the realization of one of these ideas and may lead to an impulsive price movement in either direction.

Conclusion

Bitcoin maintains the status quo and moves within the established range of $40.5k–$43.4k with minimal trading activity. The formation of the uncertainty pattern, the "wedge," will lead to the BTC price breaking out of the current corridor. However, it is too early to talk about the direction of the breakout as the technical analysis pattern continues to form. In the coming days, significant changes in the price movement of BTC should not be expected, as there are no clear catalysts for a surge in trading activity.

Artem Petrenko,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
All Analytics
Wave analysis
EUR/USD Analysis – April 11th The wave structure on the 4-hour EUR/USD chart has transformed into a bullish one. I believe there's no doubt that this transformation occurred solely due to the United States'
Chin Zhao
18:33 2025-04-11 +02:00
1075
Forecast
USD/JPY: Simple Trading Tips for Beginner Traders on April 11th (U.S. Session) Trade Analysis and Advice for Trading the Japanese Yen The test of the 143.49 price level coincided with the moment the MACD indicator had just started moving downward from
Jakub Novak
18:26 2025-04-11 +02:00
1045
Breaking Forecast Trading Plan Cryptocurrencies USD/RUB Russian Economy Video Analysis
Trading Instruments
EURUSD GBPUSD USDCHF USDCAD USDJPY AUDUSD EURGBP EURJPY NZDUSD EURNZD Silver Gold #CL #USDX COVID-19 Bitcoin
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

Trump makes another step towards crypto market

Bitcoin and Ethereum plunged late yesterday but then managed to recover their positions. For now, the bears still have more strength than the buyers, but this may only be temporary
Jakub Novak 16:38 2025-04-11 UTC+2

Trading Recommendations for the Cryptocurrency Market on April 11

Bitcoin and Ethereum dropped in value toward the end of Thursday's U.S. session but recovered during today's Asian trading hours. It has become common practice that the crypto market declined
Miroslaw Bawulski 09:28 2025-04-11 UTC+2

Technical Analysis of Intraday Price Movement of Polkadot Cryptocurrency, Friday April 11, 2025

With the appearance of divergence between the price movement of the Polkadot cryptocurrency and the Stochastic Oscillator indicator on its 4-hour chart, as long as there is no weakening correction
Arief Makmur 08:52 2025-04-11 UTC+2

Technical Analysis of Intraday Price Movement of Uniswap Cryptocurrency, Friday April 11, 2025.

From what is seen on the 4-hour chart of the Uniswap cryptocurrency, there appears to be a divergence between the Uniswap price movement and the Stochastic Oscillator indicator, so based
Arief Makmur 08:52 2025-04-11 UTC+2

Trading Recommendations for the Cryptocurrency Market on April 10

Bitcoin and Ethereum both surged, gaining between 6% and 10% on news that Trump had suddenly changed his mind. A strong wave of FOMO is evident in BTC following news
Miroslaw Bawulski 08:05 2025-04-10 UTC+2

Bitcoin under selling pressure. Why even spike could hardly save bulls

Bitcoin is taking a nosedive, funds are reporting losses, and analysts see no reasons for growth. What is happening with the leader of the crypto market? What
Ekaterina Kiseleva 12:07 2025-04-09 UTC+2

Trading Recommendations for the Cryptocurrency Market on April 9

Bitcoin and Ethereum collapsed by the end of Tuesday, continuing the heavy sell-off during today's Asian session. Another sharp decline in the U.S. stock market dragged other risk assets down
Miroslaw Bawulski 09:22 2025-04-09 UTC+2

Another Cryptocurrency Market Crash

Another collapse in the stock markets has also hit the cryptocurrency market. Investors, fearing further declines, began to massively offload digital assets, which triggered a sharp drop in the prices
Jakub Novak 09:22 2025-04-09 UTC+2

Trading Recommendations for the Cryptocurrency Market on April 8

Bitcoin and Ethereum are gradually recovering after the sharp sell-off earlier this week. The situation in the U.S. stock market and its sharp decline are closely tied to the fall
Miroslaw Bawulski 09:25 2025-04-08 UTC+2

Bitcoin – Technical Analysis Overview

Currently, the market is testing monthly support levels at 79,773 – 75,446. A consolidation below this area would give bears control over these levels and invalidate the Ichimoku weekly golden
Evangelos Poulakis 07:36 2025-04-08 UTC+2

Top analytics

Relevance up to 02:00 2025-04-12 UTC--4
EUR/USD: Simple Trading Tips for Beginner Traders on April 11. Review of Yesterday's Forex Trades
08:42 2025-04-11
Forecast
Relevance up to 02:00 2025-04-12 UTC--4
The ECB May Cut Interest Rates Twice
12:42 2025-04-11
Fundamental analysis
Relevance up to 22:00 2025-04-11 UTC--4
GBP/USD Forecast for April 11, 2025
05:03 2025-04-11
Technical analysis
Relevance up to 22:00 2025-04-11 UTC--4
EUR/USD Forecast for April 11, 2025
05:03 2025-04-11
Technical analysis
Relevance up to 02:00 2025-04-12 UTC--4
USD/JPY: Simple Trading Tips for Beginner Traders on April 11. Review of Yesterday's Forex Trades
08:42 2025-04-11
Forecast
Can't speak right now?
Ask your question in the chat.
Widget callback
Callback widget
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.