Bitcoin, the world’s largest cryptocurrency by market cap, has struggled to gain ground this month, with the price consolidating between $57,000 and $60,000, leading analysts to question whether Bitcoin is nearing the end of this consolidation phase or if further price corrections are imminent.

Bitcoin: consolidation or breakout?

Legendary crypto analyst Peter Brandt has highlighted the formation of a megaphone or broadening triangle pattern on Bitcoin’s price charts. This pattern is evident on both the weekly and daily charts as Bitcoin is in its current consolidation phase.

According to Brandt, Bitcoin’s megaphone pattern shows that the price is testing both ends of its range. The upper boundary of this pattern is near the all-time high (ATH) of $73,835, while the lower boundary has found support between $52,000 and $55,000. This suggests that Bitcoin is experiencing significant volatility while navigating these key levels.

Continuing the analysis, Brandt points out that Bitcoin has yet to break the $73,835 resistance or break below the $52,500-$49,000 support, suggesting that the market is still in a consolidation phase and there is no clear direction for its next major move yet.

Is consolidation coming to an end?

Meanwhile, the analyst at CryptoQuant believes that Bitcoin could be close to completing its market consolidation phase. However, recent data shows increased demand for Bitcoin, with daily token transfer volume increasing from $650,000 to $765,000 as Bitcoin approached the $60,000 mark.

Although this increase in volume is due to some panic selling, the stability of the market nevertheless indicates strong interest in Bitcoin.

Usually, the end of consolidation means smaller price changes and less volatility as investors reach a consensus on the asset’s value. For Bitcoin, this could mean that the current price range is setting a new floor, which could support future price growth.

Bitcoin price movement

Currently, Bitcoin is trading at $59,436, down 2.2% in the last 24 hours. Bitcoin’s market cap has dropped to $1.176 trillion, while its dominance remains at 55.81%.

However, Bitcoin continues to struggle to hold the crucial $60,000 mark, which has been a focus for traders lately. Since July 22, Bitcoin has been fluctuating within a 40% range, moving between a low of $49,842 and a high of $69,799.

If Bitcoin breaks the $60,000 mark, it could potentially rise to $61,000. However, if it fails to sustain this level, the price could continue to fall towards $54,000 in the short term.