Bitcoin (BTC) has now entered a period of prolonged stability, lasting for 42 days, leaving crypto traders divided on whether it is consolidating for another surge or preparing for a 20% pullback towards important support levels.
On May 30, a pseudonymous crypto trader known as CryptoCon stated that Bitcoin’s lack of volatility in its price is a clear indication of market boredom. According to data from CoinMarketCap, Bitcoin is currently trading at $67,680, which is only 6.7% higher than its price 42 days ago. Throughout this period, Bitcoin has mainly traded within a narrow range, with the exception of breaking outside its support and resistance levels at $58,253 and reaching $71,443.
Willy Woo, another pseudonymous crypto trader, sees Bitcoin’s extended consolidation as a positive sign, suggesting that its price has not yet peaked. He predicts that Bitcoin still has “more room to run before topping out.” On the other hand, Daan Crypto Trades argues that Bitcoin is currently in the price discovery phase, where anything is possible. Without specific levels to watch for, it becomes challenging to set targets. However, Daan Crypto Trades believes that once Bitcoin surpasses its current all-time high of $73,679, it could potentially reach $102,073 by the end of the year.
However, other crypto traders who rely on different indicators are less optimistic about Bitcoin’s future. Timothy Peterson, the founder of Cane Island Alternative Advisors, suggests that Bitcoin’s price may drop to around $54,190 based on the Bitcoin Price to Metcalfe Value indicator. This indicator implies that the value of Bitcoin is directly proportional to the square of the number of users or participants in the Bitcoin network. Peterson explains that when the ratio is above 100%, it has historically predicted a bear market with a decline of 20% or more. He adds that there is a 2/3 chance of a 20% decline in the next six months, leading him to believe that Bitcoin will drop to the low 50s in the near future.
It’s important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research and analysis before making any investment decisions.