After a sharp surge and subsequent pullback, Bitcoin has entered a predictable phase of sideways movement. Traders call this a ‘chop’—fluctuations within a narrow range that often lay the groundwork for the next impulse.
Consolidation as a Necessary Stage
Bitcoin is consolidating in the $113,000–115,000 area. Possible scenarios are holding above the range or pulling back to the previous highs around $109,000.
According to crypto analyst Uniswap Gems, the Bitcoin market is now experiencing a natural pause. After a large move, the price has entered a sideways trend, and further consolidation is expected in the coming days.
He notes that the sharp volatility caught many traders off guard. Now, the range-bound fluctuations are helping the market form a local bottom. In his forecast, the current stage may last two to three days, creating tough conditions for speculators looking for quick trades.
For further growth, Bitcoin needs to turn the $113,000 level into solid support. This would open the way for a retest of $115,000. However, if the price drops below current levels and sets new local lows, a correction down to the $105,000 area and below is possible.
Historical Parallels
Trader and investor Philakone reminded that in previous cycles, Bitcoin in a bear phase consistently dropped 75–85% from peak values. According to him, many investors ignore this fact, being carried away by prolonged growth.
If in this cycle BTC reaches $125,000, then a 75% drop would bring it back to $30,000. This scenario seems extreme, but history shows that such drawdowns were the norm in previous market stages.
Caution Amid Liquidations
Another popular trader, KillaXBT, has taken an extremely cautious stance. Despite large-scale position liquidations totaling $1.5 billion, he is in no rush to open trades.
According to his analysis, the USDT.D chart (Tether dominance) signals possible risks. If the indicator breaks the Equal Highs level, this could increase pressure on Bitcoin. Therefore, KillaXBT refrains from opening both long and short positions.
What Next?
The Bitcoin market remains vulnerable after recent sharp moves. Consolidation within a narrow range could become a launching pad for a new surge upward, but the risk of a deeper correction remains. Investors should consider both BTC’s historical tendency for strong pullbacks and the USDT dominance signals pointing to caution.
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