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 on June 11, 2025 The wave structure on the 4-hour chart for EUR/USD has shifted into a bullish formation and continues to hold this shape. I believe there's little doubt that this transformation
Chin Zhao
19:00 2025-06-11 +02:00
2050
Wave analysis
GBP/USD Analysis on June 11, 2025 The wave structure for GBP/USD continues to suggest the formation of a bullish impulse wave pattern. The wave picture is nearly identical to that of EUR/USD. Until February
Chin Zhao
18:51 2025-06-11 +02:00
1600
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

Solana spot ETF around corner

Right now, Solana is in the spotlight for traders. According to the latest reports, the US Securities and Exchange Commission (SEC) has requested that potential Solana ETF issuers submit amended
Jakub Novak 16:23 2025-06-11 UTC+2

The Crypto Winter Is Becoming a Thing of the Past

Bitcoin is showing strong growth and came within a step of reaching a new all-time high. However, it's important to understand that taking this final step will be quite challenging
Jakub Novak 10:18 2025-06-11 UTC+2

Trading Recommendations for the Cryptocurrency Market on June 11

Bitcoin is undergoing a correction following yesterday's rapid surge to the $110,500 area, while Ethereum remains vibrant—having gained over 6% yesterday and currently trading at $2,785. Given such a strong
Miroslaw Bawulski 09:01 2025-06-11 UTC+2

Bitcoin Resumes Growth — And There Are Reasons Behind It

Bitcoin has resumed its upward movement, pulling other cryptocurrency assets along with it. Today's rise during the Asian session clearly points to a breakout of several major technical resistance levels
Jakub Novak 10:12 2025-06-10 UTC+2

Trading Recommendations for the Cryptocurrency Market on June 10

Bitcoin has finally broken through the $107,000 level, and during today's Asian trading session, it surged rapidly to around $110,000, stopping just a step away from updating its all-time high
Miroslaw Bawulski 09:30 2025-06-10 UTC+2

Trading Recommendations for the Cryptocurrency Market on June 9

Bitcoin has reached its recently favored level of $106,500 again, even though Friday's U.S. labor market data did not support this rise. Ethereum also strengthened over the weekend, but today's
Miroslaw Bawulski 09:21 2025-06-09 UTC+2

Technical Analysis of Intraday Price Movement of Litecoin Cryptocurrency, Thursday June 05, 2025.

On the 4-hour chart of the Litecoin cryptocurrency, there is an appearance of a Descending Broadening Wedge pattern which indicates that there will be a strengthening in the near future
Arief Makmur 09:53 2025-06-05 UTC+2

Trading Recommendations for the Cryptocurrency Market on June 5

Bitcoin is struggling to reach $106,000 less frequently and is dropping toward $104,000 more often, which is a rather concerning short-term signal. Sooner or later, this pattern could lead
Miroslaw Bawulski 09:20 2025-06-05 UTC+2

Trading Recommendations for the Cryptocurrency Market on June 4

Bitcoin and Ethereum keep trying to break through key resistance levels but continue to face the same obstacle. On one hand, this suggests a cautious approach by major market players
Miroslaw Bawulski 09:19 2025-06-04 UTC+2

The Correlation Between BTC and Global M2 Liquidity Remains High

Bitcoin still cannot firmly hold above the $106,000 level, which raises certain concerns. While other altcoins and tokens have been performing much better, at least in recent days, the fact
Jakub Novak 09:17 2025-06-04 UTC+2

Top analytics

Relevance up to 02:00 2025-06-13 UTC--5
The U.S. and China: A Small Step Forward. What's Next? (Potential for a reversal and decline in EUR/USD and NZD/USD pairs)
09:52 2025-06-11
Fundamental analysis
Relevance up to 02:00 2025-06-12 UTC--5
GBP/USD. June 11th. UK Unemployment and US Inflation
10:56 2025-06-11
Technical analysis
Relevance up to 03:00 2025-06-12 UTC--5
Results of the Second Round of U.S.–China Negotiations
11:32 2025-06-11
Fundamental analysis
Relevance up to 19:00 2025-06-11 UTC--5
GBP/USD Overview – June 11. What Will Inflation Influence?
03:31 2025-06-11
Fundamental analysis
Relevance up to 01:00 2025-06-12 UTC--5
EUR/USD: Simple Trading Tips for Beginner Traders on June 11. Review of Yesterday's Forex Trades
09:00 2025-06-11
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.