Bitcoin (Bitcoin) Rebounded from the new low of $45,550 on January 5, as analysts patiently waited for the “squeeze” to trigger new volatility.

Analysts say the prospect of “counterfeiting” may reach $40,000

Data from Cointelegraph Markets Pro and Transaction view At the time of writing, Binance showed that BTC/USD had returned to levels close to US$47,000 the previous day.

Repeated declines have not made market participants feel uneasy, and they are now turning to the prospect of a sudden rise or fall in the coming weeks.They said on Tuesday that during a period when financing interest rates were flat and open positions in the derivatives market hit record highs, the volatility was Except for a given.

Analyst William Clement predicted in some comments on Bitcoin’s Bollinger Bands chart: “I think we are entering a volatility squeeze at the end of this month.”

Clemente admits that this is a popular indicator of one of his “favorite” tools. Bollinger Bands uses two standard deviations around the Bitcoin spot price to assess when volatility occurs. Might come.

However, the question this week is whether the trend is up or down.

“If we started using the same setup in late July and initially fell to a low in our 40s during the squeeze, I would definitely be a buyer there,” Clement added when discussing the prospects.

Another article reveals possible reasons for the $45,550 decline-traders’ Failed attempt Short lows and subsequent repurchases.

Red herring candle

Those looking for upside also emphasized macro factors. Inflation is higher than expected, and Bitcoin has not yet fully responded.

related: With the resumption of BTC withdrawals in January, Bitcoin exchange balances tend to be at historical lows

“From a point of view, we still stick to the recent upward trend,” the trading company QCP Capital wrote in its latest update to subscribers of the Telegram channel.

“From the 10-year breakeven inflation rate (which has historically been highly correlated with BTC), there has been a major divergence since the end of December…If BTC catches up here, we can see the trend?? 60,000 moves.”

With the release of the Consumer Price Index (CPI) data in December, inflation clues will be announced next week.

“Bitcoin has never been like this when it ended its bullish cycle. It has never been, since its inception,” a more bullish galaxy continue Tuesday.

“It always drops sharply without much recovery.”

Galaxy has been observing the consolidation period after Bitcoin’s historical price high, and concluded that the November high of $69,000 is logically unable to form a multi-year high.

“Before the next large-scale upward move, we are in the integration phase,” he added.