Bitcoin Sets Record for Consolidation Phase
Bitcoin has entered a new record-breaking consolidation phase that has lasted for eight months. This phase is similar to previous market cycles, according to technical analyst ‘CryptoCon.’ The analyst uses Fibonacci retracement levels to divide market cycles into different phases. This prolonged sideways period between phases 2 and 3 is a recurring pattern in Bitcoin’s history.
Sideways Cycle Sandwich
Bitcoin has been trading sideways since March, moving from the bottom phase to the current transitionary phase. This pattern of an extended sideways stage has occurred in previous market cycles. Analysts predict that November will mark a pivot point before a sustained upward movement. The next market cycle is expected to begin after the halving event in April or May next year.
Caution Remains in Short-Term Predictions
Analyst ‘CrediBULL Crypto’ remains cautious at current levels, noting the clear sideways/accumulation below and a recent move to the upside. However, this move has primarily been driven by short squeezes and low volume, suggesting it may not be a strong impulsive move up.
BTC Price Outlook
Bitcoin is currently priced at $27,210, with a recent breakout above the $27K level. However, it has lost 2.7% over the past week and faces resistance at $28K.
Hot Take: Bitcoin’s Prolonged Consolidation Signals Market Patterns
Bitcoin’s eight-month consolidation phase reflects historical market patterns observed in previous cycles. This sideways cycle sandwich between phases 2 and 3 is a common occurrence and indicates a period of long-term stability before significant price movements. While caution remains in short-term predictions due to low volume and short squeezes, many analysts anticipate a pivot point in November and a more sustained upward movement after next year’s halving event. Despite the current lethargy, Bitcoin’s consolidation phase holds valuable insights for investors and traders.
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