According to recent insights from COINOTAG on January 13th, cryptocurrency analyst Rekt Capital noted that Bitcoin’s current consolidation phase may signify a critical “reset in price discovery.” This phase typically unfolds between weeks 6 and 8 during a parabolic cycle and often lasts between 2 to 4 weeks. Rekt Capital emphasized that this reset has persisted for four weeks, aligning with historical precedent which suggests it is nearing completion.
Further analysis by Axel Adler Jr. highlighted that the ongoing pullback in Bitcoin’s price is relatively minor compared to previous periods, particularly the significant over 26% dip from July 29th to August 5th, 2024. Adler indicated that such a gentle reset is common at the onset of halving years, reinforcing a stable long-term outlook.
In parallel, veteran trader Peter Brandt posited that Bitcoin could potentially be forming a Head and Shoulders (H&S) pattern on its daily chart. Brandt outlined three possible outcomes, with the first indicating that Bitcoin could validate this pattern, possibly targeting a price zone under $77,000. Alternatively, the other two scenarios suggest a potential failure to meet the target, which could either result in a bear trap or transition to a broader price pattern.