Following BTC’s present slump to 2017 highs, the crypto market is expected to endure a lengthy consolidation and accumulation phase. The relentless selling that has battered Bitcoin (BTC) and the broader market over the previous week began to relent despite an ongoing sell-off in conventional markets on June 16, according to traders.
After reaching a high of $23,000 in the early trading hours on June 16, bitcoin’s price steadily declined as market activity decreased to hit a low of $20,765 later that day.
BTC/USDT 1-day chart. Source: TradingView
Expect a multi-month consolidation period at the 200-week MA. In the macro view of Bitcoin’s journey, Rekt Capital, an analyst and pseudonymous Twitter user, shared the following chart which depicts BTC’s behavior near its 200-week moving average (MA).
BTC/USD 1-week chart. Source: Twitter
Rekt Capital said, “If #BTC continues to hold the orange 200-week MA as support and the black 200-week EMA figures as resistance… $BTC could form an Accumulation Range here, just like in 2018. This would enable multi-month consolidation to even as far as December 2022.”
If BTC bottoms are buy-the-dip, then miners will be searching for a soft landing. This is the scenario that many crypto traders fear; whether it’s true or not, this could happen in the future. If this is how things play out, investors don’t need to rush to acquire BTC, as cryptocurrency trader and pseudonymous Twitter user Altcoin Sherpa noted in several charts displaying how much time BTC spent in previous accumulation phases.
The longest accumulation time noted by Altcoin Sherpa is the 287-day span shown in the graph above. Other comparable examples include the 133-day period from November 2018 to April 2019, and the 63-day gap between May 2020 and July 2020. Altcoin Sherap said, “It’s likely that you will get plenty of time to catch a bottom during the accumulation phase. #Bitcoin takes a while for its bottom to form and you should probably just go out and touch some grass instead of knife catching.”
The price of Bitcoin is up more than 10% in the past 24 hours, having hit a new all-time high. The following chart was provided by crypto trader NebraskaGooner, who claims that “the lower Fibonacci level has been reached.”
TAnalyst, a pseudonymous Twitter user, recently posted the following chart showing the recent low for the relative strength index (RSI) 1000.
Based on the history of an RSI 1000 score falling below 50, the price of Bitcoin may soon start to rise. According to crypto educator IncomeSharks, the finest summary of the present condition of the Bitcoin market and the uncertainty it is generating for cryptocurrency traders was provided.
The cryptocurrency market cap is now valued at $905 billion, with Bitcoin’s dominance rate standing at 44.3 percent.
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