Bitcoin is currently experiencing its longest period of consolidation, lasting for 92 days and counting. Analysts are optimistic that this extended period of stability could potentially lead to a significant upward rally for the asset.
According to a pseudonymous crypto trader named Daan Crypto Trades, who shared their insights in a post on June 11, the longer the consolidation period, the greater the potential for expansion afterwards. Another analyst known as Mags, with a following of 79,500 X followers, also highlighted the significance of the current consolidation period in a post on June 9.
Once Bitcoin breaks out of this consolidation range, experts predict that we could witness a substantial surge in its value. Previous cycles have shown that even shorter periods of consolidation have ultimately led to new all-time highs for the cryptocurrency.
Looking back at the previous cycle following the 2020 Bitcoin halving, there was a 21-day consolidation period before Bitcoin reached an all-time high of $69,000 in November 2021. Despite the current consolidation phase that Bitcoin has been in since hitting its peak of $73,679 on March 13, it is still trading within a 26% range, with its lowest point reaching $58,253 on May 2.
As of now, Bitcoin is trading at $67,413 according to CoinMarketCap data. Analysts have suggested that the consolidation period could potentially extend until September or even October, based on previous forecasts and market trends.
Charles Edwards, founder of Capriole Investments, has compared Bitcoin’s price action to gold, noting a similar chart pattern known as a “massive cup and handle.” This pattern suggests a potential for significant growth in Bitcoin’s value over time.
It is important to note that this article does not provide investment advice. All investment decisions should be made after conducting thorough research and considering the risks involved.