Bitcoin’s 92-Day Consolidation Signals Potential Huge Rally, Traders Say

UTC by staff writer · 3 min read
Bitcoin’s 92-Day Consolidation Signals Potential Huge Rally, Traders Say
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Bitcoin (BTC) is currently forming a Descending Broadening Wedge on its daily timeframe chart, indicating potential volatility and a bullish reversal if the $71,300 resistance is breached.

Bitcoin (BTC) has been in a consolidation phase for 92 days, and traders are increasingly optimistic that this extended period of stability could lead to a significant rally. Pseudonymous crypto trader DaanCrypto highlighted the potential for a major price movement in a June 11 post on X, formerly Twitter, stating:

“Generally, the longer a consolidation, the larger the expansion afterward.”

Another trader thescalpingpro echoed this sentiment to their 79,500 followers on June 9, emphasizing that the current consolidation period is the longest seen in recent times. “Once price breaks out of this consolidation range, we are going to witness a massive upside rally,” they noted, pointing out that shorter consolidation periods in past cycles have still led to new all-time highs.

Historical Patterns and Current Data

Historically, Bitcoin’s consolidation phases have been followed by substantial price increases. After the 2020 Bitcoin halving, there was a 21-day consolidation period before BTC broke out and eventually reached an all-time high of $69,000 in November 2021. Current data shows that Bitcoin has been consolidating since it hit an all-time high of $73,679 on March 13, lasting 92 days so far.

Consolidation periods are characterized by lower trading volume and reduced volatility. Since reaching its all-time high, Bitcoin has traded within a narrow 26% range, briefly dropping to its lowest point of $58,253 on May 2.

This tight trading range and extended consolidation period have traders anticipating a significant price movement once Bitcoin breaks out of its current pattern. Crypto analysts have previously suggested that the current consolidation could last until at least September or even October.

Other Metrics Support Possible Breakout

Bitcoin (BTC) is currently forming a Descending Broadening Wedge on its daily timeframe chart, indicating potential volatility and a bullish reversal if the $71,300 resistance is breached. This pattern typically precedes upward movements in price.

Recent data shows Bitcoin’s exchange supply at its lowest since December 2021, with approximately 942,000 coins held on platforms. Low exchange supply often signals bullish sentiment as investors withhold selling, anticipating higher prices.

At the same time, whale accumulations are on the rise, accompanied by a significant decline in Bitcoin’s transaction volume in spot markets. Reduced trading activity suggests investors are holding onto Bitcoin, typically seen before price increases.

These metrics collectively suggest favorable conditions for Bitcoin price to break out soon. Traders and analysts alike are watching these metrics closely, expecting that Bitcoin’s breakout could trigger a new bullish cycle and potentially set new all-time highs.

It’s important to approach the market with caution due to its unpredictable and ever-changing nature. While indicators suggest a possible price breakout, market conditions can quickly shift. Investors are advised to stay informed and flexible to navigate these fluctuations effectively.

Bitcoin News, Cryptocurrency News, News
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