Bitcoin has been experiencing its lengthiest period of consolidation, lasting 92 days and still ongoing, prompting analysts to speculate that the prolonged stability may be laying the groundwork for a significant surge in value.
According to a post by the pseudonymous crypto trader Daan Crypto Trades on June 11, “Generally, the longer a consolidation lasts, the greater the subsequent expansion.” Meanwhile, Mags informed their 79,500 followers on June 9 that the current consolidation phase is the lengthiest one seen so far.
They further stated, “Once the price breaks out of this consolidation range, we can expect to see a substantial uptrend,” highlighting that even shorter consolidation periods in previous cycles have led to new record highs.
Looking back at the Bitcoin consolidation periods over the past four-year cycles, it is evident that after the 2020 Bitcoin halving, there was a 21-day consolidation phase before Bitcoin surged to an all-time high of $69,000 in November 2021.
Despite the ongoing consolidation, Roman reassured followers in a post on June 12, stating, “We are still within a significant consolidation range. Stay patient.”
Bitcoin has been in a consolidation phase since reaching its peak of $73,679 on March 13, marking a 92-day period of stability. During consolidation phases, Bitcoin’s trading volume and volatility typically decrease. Since hitting all-time highs, Bitcoin has been trading within a narrow 26% range, momentarily dropping to a low of $58,253 on May 2.
At present, Bitcoin is valued at $67,413 according to CoinMarketCap data.
Analysts predict that the consolidation phase could prolong until at least September or even October. Charles Edwards, founder of Capriole Investments, suggested in a report on May 16 that Bitcoin’s price could consolidate for four to five months based on stock and crypto market seasonality, along with Bitcoin onchain data.
Drawing parallels between Bitcoin’s price behavior and gold, Edwards highlighted a pattern resembling a “massive cup and handle” formation over the past 13 years, with the “cup” phase lasting four years.
Disclaimer: This article does not provide investment advice or recommendations. All investment and trading decisions involve risks, and readers are advised to conduct their own research before making any decisions.