Bitcoin’s Range-Bound Trading Ethereum Could Benefit, Analysts Say

• Bitcoin remains stagnant, but analysts predict a surge past $100K, with Ethereum potentially surpassing $3K
• Ethereum’s TD Sequential indicator signals a rebound on the hourly chart, suggesting potential upside momentum
• Experts warn against shorting low-volatility markets, citing historical Bollinger Band width patterns

Bitcoin’s been in a rut lately and traders are growing restless as the market consolidates. However, renowned analyst Michael van de Poppe sees Bitcoin’s lackluster price action in a positive light. He thinks BTC’s ‘boring state’ could benefit altcoins, with Ethereum as a key contender. 

The expert predicts that Bitcoin could break $100K, while Ethereum might surpass $3K. Historically, such a sideways price trend in Bitcoin has led to significant altcoin rallies.

Analyst Warns Against Shorting Low Volatility Market

At the same time, another analyst has cautioned against shorting in a low-volatility environment, citing Bollinger Band width extremes. Technical analysis shows that markets with extreme lows in volatility have rarely rewarded short sellers before. This supports patient investors waiting for a breakout.

Ethereum Flashes Buy Signal

In contrast, Ethereum has flashed a buy signal on the TD Sequential indicator, often marking a trend reversal. This technical indicator, widely used among traders, suggests Ethereum is ready for upward momentum in the coming sessions. 

Currently, the token is near key support levels, making it a good entry point for traders expecting an altcoin rally.

Related: Ethereum January Slump Sparks Debate: Will February See a 46% Rally Repeat?

Economic Factors Behind Bitcoin’s Downturn

Looking at the bigger picture, market observers attribute the drawdown to economic factors like central banks possibly restarting quantitative easing, which could cause this decline. 

Former BitMEX CEO Arthur Hayes previously suggested the liquidity issues faced by the U.S. Treasury’s general account as a major factor in a potential market downturn. This is especially true in the first quarter and could hurt investor sentiment.

Besides that, there is unrest on the lack of progress with the Strategic Bitcoin Reserve initiative under the new Trump administration, which has also dampened investor mood.

Related: Bitcoin on Short Squeeze Watch? Potential $1 Billion Liquidations in Play

For now, Bitcoin remains in a ‘boring’ state, but analysts emphasize that such phases have historically preceded explosive moves. With altcoins bracing for potential upside, all eyes are on BTC’s next move and whether it can lead the market into a new bullish cycle.