Thursday May 23, 2024 ▪
3
min reading ▪ by
The crypto market is experiencing an eventful year in 2024, marked by significant price fluctuations. However, as we continue, the focus turns back to Bitcoin. Despite an ongoing consolidation phase, signs of an upward recovery are increasing.
Temporary consolidation of Bitcoin
Although Bitcoin recently crossed the symbolic $70,000 mark, supported by speculation around the approval of an Ethereum ETF, it has failed to maintain these high levels. Indeed, selling pressure brought BTC back below $70,000. Nonetheless, this consolidation appears to be only temporary, as historical trends suggest that an imminent bullish breakout could be on the horizon.
According to Rekt Capital, a weekly close above $71,500 could trigger a bullish breakout. However, historical data indicates that Bitcoin could still consolidate for several more weeks. Indeed, this consolidation phase would allow the leading crypto to realign itself with previous halving cycles, thus paving the way for a more sustainable rally.
An opportunity for investors to seize
For savvy investors, this period of consolidation represents an interesting opportunity. Indeed, on-chain indicators reveal impressive underlying strength. For example, the TD Sequential indicator is currently showing a buy signal on the Bitcoin hourly chart, suggesting a potential near-term rebound.
Long-term Bitcoin holders (hodlers) appear determined to hold on to their holdings, even if prices rise above $70,000. This reluctance to sell underscores the growing perception of Bitcoin as a store of value rather than simply a speculative asset.
For now, Bitcoin’s crucial support level lies around $67,500. Holding above this level could pave the way for a rally up to $74,500. However, if BTC breaks this support, a further 5% correction towards $64,000 could be possible.
Although Bitcoin is currently going through a consolidation phase, all signals are converging towards an upcoming bullish rally. Whether it’s technical analyses, on-chain indicators or hodler behavior, everything indicates that the leading crypto is preparing for a new bull cycle. Savvy investors would therefore do well to remain attentive to upcoming developments in the cryptocurrency markets.
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The world is evolving and adaptation is the best weapon to survive in this undulating universe. Basically a crypto community manager, I am interested in everything directly or indirectly related to blockchain and its derivatives. In order to share my experience and raise awareness of a field that fascinates me, there is nothing better than writing articles that are informative and relaxed at the same time.
DISCLAIMER
The views, thoughts and opinions expressed in this article belong solely to the author and should not be considered investment advice. Do your own research before making any investment decisions.
