Analyst predicts potential for Bitcoin consolidation lasting 4 to 5 months, while highlighting promising big cup and handle pattern.

Charles Edwards, founder of Capriole Investments, suggests that based on stock and crypto market seasonality, as well as Bitcoin on-chain data, the price of BTC could consolidate for a period of 4 to 5 months.
In a recent report, Edwards points out that Bitcoin has been fluctuating within the range of $58,000 to $65,000, with weekly closes above $58,000 indicating a continuation of the long-term trend. He compares the price action of BTC to that of gold, which formed a “massive cup and handle” pattern over a span of 13 years, with the “cup” phase lasting four years. Edwards believes that Bitcoin is showing a similar chart pattern.
Drawing parallels between Bitcoin and gold, Edwards suggests that BTC could spend up to 9 months in the range high before experiencing a measured move upwards. However, he also notes that Bitcoin’s Supply Delta and 90-Day Coin Days Destroyed (CDD) metrics have formed rounded tops, indicating a mid-cycle pit stop.
Edwards pays close attention to the Capriole Bitcoin Macro Index, which combines various on-chain and macro market metrics. This index suggests that BTC is currently in a “risk-off” phase, where investors are more focused on protecting their capital than taking risks.
Despite this, the report highlights that most other metrics indicate that this cycle still has room to grow. Investment management firm ARK Invest supports this view, stating that previous halving events have set the stage for long-term momentum for Bitcoin.
If the halving cycle follows its expected pattern, Bitcoin’s price could enter a parabolic uptrend and potentially reach a price range of $180,000 to $200,000 with a threefold increase.
It is important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research and make informed decisions when it comes to investments and trading.