- Bitcoin’s price is currently in a consolidation phase that could last for another 150 days, according to Rekt Capital.
- The cryptocurrency’s price action is now awaiting a potential impetus from the Federal Reserve.
- Bitcoin’s momentum has been range-bound between $60,000-$70,000 for the past two months.
Bitcoin is gearing up for a time-based capitulation phase that could last for another 150 days, according to crypto analyst Rekt Capital. The cryptocurrency’s price action is now awaiting a potential impetus from the Federal Reserve.
Bitcoin’s Price Consolidation
Bitcoin, the world’s largest cryptocurrency, has bounced back strongly from the lows of $57,000 last week and is currently consolidating around $64,000. Since the fourth Bitcoin halving last month, the BTC price has largely remained range-bound. According to Rekt Capital, Bitcoin has recently completed a price-based capitulation phase known as the Halving Retrace phase. The focus now shifts to the time-based capitulation that the ongoing Re-Accumulation phase will bring.
Historical Patterns and Future Outlook
Rekt Capital suggests that a consolidation period lasting over 150 days after the Halving is in line with historical price patterns. Such a prolonged consolidation phase is viewed as beneficial for the cycle as it moderates the rate of Bitcoin price acceleration. This extended consolidation period is anticipated to realign the current cycle with historical patterns observed after previous Halving events, which is considered a positive development for Bitcoin’s long-term growth and stability within the market.
Bitcoin’s Momentum and the Federal Reserve
In March 2024, Bitcoin surged to unprecedented heights, marking new All-Time Highs and indicating a significant acceleration in the current cycle. However, Bitcoin’s momentum has since stalled, with the cryptocurrency trading within a range of approximately $60,000 to $70,000 for nearly two months. This extended consolidation period has moderated the cycle’s acceleration, bringing it down from 260 days to 210 days compared to historical patterns.
Impact of Potential Rate Cut
Bitcoin’s price has been bolstered by growing expectations of a potential rate cut by the Federal Reserve. Markets are now pricing in an increased likelihood of a 25 basis point reduction in September. This shift in sentiment has provided support to cryptocurrencies, which typically perform well in an environment characterized by low-interest rates and ample liquidity. The prospect of a rate cut gains traction amidst signs of a cooling labor market, offering the Fed additional motivation to consider monetary easing.
Conclusion
Bitcoin’s price is currently in a consolidation phase that could last for another 150 days, according to Rekt Capital. The cryptocurrency’s price action is now awaiting a potential impetus from the Federal Reserve. Bitcoin’s momentum has been range-bound between $60,000-$70,000 for the past two months. However, the prospect of a rate cut by the Federal Reserve could provide the necessary impetus for further price action on the upside.
