Bitcoin [BTC] may be at the tail end of something, but does this warrant caution too

ambcrypto.com:

Bitcoin noted some upside over the last 24 hours following a brief recovery back above $20,000. Investors that have kept a close eye on its performance over the last few weeks may have noticed its confinement within a tight range. However, it might be closer to the tail end of this range, and things are about to get more interesting.

Bitcoin has been stuck between the $19,000 and $24,000 levels for more than a few weeks now. It exited this range only a few times since June, which means the narrow range has extended for at least three months.

Bitcoin’s historic price action has seen periods where the price trades within such a narrow range, followed by the return of high volatility directional price movements. Now, if the same observation holds true for the prevailing range, the cryptocurrency might just be at the tail end of the same too.

Furthermore, an analysis of BTC’s long-term outlook suggests that it has been interacting with its long-term support.

— MMCrypto (@MMCrypto) September 17, 2022

Previous instances where the price has interacted with the same support band were characterized by long bearish wicks. A repeat of the same would thus yield a major pullback, one which would thus yield a bear trap before the next major upside.

The aforementioned observation is reflected in Bitcoin’s long-term pricing model too. BTC’s price, at the time of writing, was trading below the realized price zone. This is more evidence that the cryptocurrency is near the bottom of the ongoing bearish cycle.

Source: Glassnode

BTC’s MVRV ratio also seemed to suggest that it has been regaining strength. Now, this is not necessarily a guarantee that the