Bitcoin Price Consolidation Continues Amidst Renewed Market Dynamics
Bitcoin (BTC), the largest cryptocurrency globally, has been in a consolidation phase over the past week, with prices fluctuating between $67,000 and $70,000. This period follows a brief price correction of 20% in early May, bringing the price as low as $56,400. The recent consolidation comes as inflows into the US spot Bitcoin ETF market have picked up, and selling pressure seems to have eased off, both in the ETF market and among Bitcoin investors overall.
Bitcoin Selling Pressure Eases
- Julio Moreno, from on-chain market analytics firm CryptoQuant, highlights the current Bitcoin price level of $70,000, indicating lower selling pressure compared to March.
- Traders are exerting minimal selling pressure now, with unrealized profits at around 3%, significantly lower than the 69% observed in early March.
- This suggests that most of the heavy selling has already taken place, as evident from the data.
Santiment Data Analysis
- Data from Santiment shows that Bitcoin has surpassed a $70,000 market cap while the US stock market was on a break for Memorial Day.
- The positive performance during a stock market holiday indicates Bitcoin’s independent behavior from traditional market trends.
Approaching the Final Pre-Breakout Consolidation Phase
Crypto analyst Rekt Capital pointed out that Bitcoin’s most recent weekly candle closed below the range high resistance during its re-accumulation phase, spanning $60,000 to $70,000. This situation potentially signals a continuation of consolidation within this range before a breakout.
- The current bull cycle consists of two phases: post-halving re-accumulation and the parabolic rally phase.
- Historically, Bitcoin consolidates around all-time highs before significant bullish movements, a pattern observed in the current market activity.
- While further sideways trading is possible, the post-halving rally coupled with renewed investor sentiment could drive Bitcoin to surpass its previous high of $73,700.
Bitcoin is approaching a crucial point in its current cycle, with signs indicating a potential shift from consolidation to a bullish surge. The ongoing re-accumulation phase could soon pave the way for a significant price rally if historical patterns hold. Currently, BTC has shown a 2% increase in the last 24 hours and a 10% gain over the past month, with a current trading price of $70,200.
Hot Take: Bitcoin’s Momentum Towards New Highs
As Bitcoin continues its consolidation phase, market dynamics and reduced selling pressure hint at a potential breakout towards higher price levels. Stay tuned as the leading cryptocurrency navigates through this critical juncture in its current bull cycle, with expectations of further positive momentum and potential new all-time highs on the horizon.
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