- Bitcoin could rally higher above the $90K-108K range.
- The choppiness index and reduced sell pressure from long-term holders reinforced the breakout prospects.
Bitcoin [BTC ($89,649.00)] appeared set for a renewed uptrend, with key on-chain indicators suggesting a decisive breakout from the $90K-108K range is imminent.
One of the metrics, the choppiness index (CI), which gauges BTC price action relative to its price consolidation, implied that the ongoing sideways movement was about to end.
In fact, on-chain analyst Checkmate reinforced this outlook and stated,
“The #Bitcoin Choppiness Index is fully gassed, and ready to trend. As covered back in late-Nov, the thesis was we likely had several weeks of chopsolidation before properly trending away from the $100k level. We’re there.”
Historically, per the attached chart, a sharp uptick in the weekly CI (red) signaled consolidation (purple blocks).
On the contrary, a drop in CI coincided with sharp uptrends or downtrends (orange blocks). With the CI at an inflection point after a recent surge, a retreat would imply a ren...
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