Bitcoin Price Soars by Nearly 14% After Breaking Out from 6-Month Range Consolidation

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Bitcoin Price Soars by Nearly 14% After Breaking Out from 6-Month Range Consolidation

Bitcoin price has broken out from a six-month range consolidation, surging 13.91% to reach the current price of $27,787. This latest bullish move comes after the recent banking crises, which pumped liquidity into the crypto market, resulting in a surge in prices for most cryptocurrencies. With the fifth range currently in play, industry pundits predict more gains for Bitcoin.

The Relative Strength Index (RSI) and the Awesome Oscillator (AO) are indicating positive momentum for Bitcoin price. Bitcoin's consolidation between January and June 2012 saw a 247% breakout, and in a similar way, the crypto broke out from a six-month-long consolidation between November 2016 and May 2017, surging around 4200% to the zone above $15,000.

On-chain data, as presented by IntoTheBlock, also supports the bullish case for Bitcoin price. The fundamental index identifies investors' average purchase price of a cryptocurrency versus its current price. Its statistical model analyses crypto addresses (wallets) that bought the asset at an average price above or below the current market price.

Based on the on-chain metric, Bitcoin price faces the next resistance level around the $28,606 and $33,399 price range. This was an important supplier congestion zone because 1.4 million addresses bought 543,250 BTC at an average price of $30,823 around this area. A successful attempt to push Bitcoin price past this zone would add credibility to the bullish narrative and inspire immense buying from the investor cohort who may wish to record more gains.

While industry pundits are optimistic about Bitcoin price soaring, some investors remain cautious. A daily candlestick close below the $22,649 psychological support level could invalidate the bullish narrative. In the event of a sudden shift in investor appetite, Bitcoin price could drop towards the $20,000 psychological level, indicating a 27% drop from current levels.

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