- Bitcoin’s ongoing consolidation phase is one of the longest in its history, raising the prospect of a significant price rebound.
- Historical data suggests that Bitcoin could soon break out of this consolidation phase and reach new highs of $70,000.
- Despite the current climate of fear, uncertainty, and doubt (FUD), the likelihood of a Bitcoin price bounce is increasing.
As Bitcoin’s price consolidation phase extends, experts predict a potential breakout that could see the cryptocurrency reach new highs.
Bitcoin’s Lengthy Consolidation Phase
Bitcoin’s price has been in a consolidation phase for over 50 days, one of the longest in its history. Despite a recent dip below $61,000, the cryptocurrency has shown signs of recovery, climbing 2% in the last 24 hours and returning to the $63,000 level. Bitcoin has predominantly traded within the range of $61,000 to $64,000, but data suggests that it may be on the verge of breaking out of this consolidation phase.
Historical Data Indicates Potential Breakout
Crypto analyst Rekt Capital notes that the ongoing retracement in the crypto market has surpassed previous records. With a decline of -23.6%, it has now become the deepest pullback, overtaking the -22.9% retracement observed in early 2023. This retracement has also become one of the longest in this cycle, lasting for nearly 50 days. The data indicates that Bitcoin’s current pullback has exceeded the depths of any previous retracement in this cycle, marking a significant shift in market dynamics.
Bitcoin Price Predicted to Reach $70,000
The longest pullback cycle has lasted for 63 days, suggesting that the Bitcoin price retracement is likely about to end. If the Bitcoin price manages to break through $64,000, we could soon see the levels of $70,000, and new all-time highs beyond that. According to an analysis from Rekt Capital, Bitcoin’s consolidation within its current price range, extending up to $70,000 post-Halving, could signal a deceleration of the cycle. This consolidation phase might contribute to a resynchronization with Bitcoin’s regular Halving Cycle, historically characterized by recurring patterns.
Conclusion
Despite the current climate of fear, uncertainty, and doubt (FUD), the likelihood of a Bitcoin price bounce is increasing. On-chain data provider Santiment suggests that the overly bearish sentiment in the market increases the likelihood of a bounce. Amidst elevated uncertainty, the departure of small wallets from the sector could potentially serve as the catalyst for Bitcoin and numerous altcoins to undergo gradual recoveries in the lead-up to summer.
