Bitcoin is expected to continue its period of consolidation for the next few months, according to an analysis by popular trader and analyst Rekt Capital. He compared the current price action of Bitcoin to that of 2023 and found similarities in the extended periods of nonvolatile moves. This suggests that Bitcoin tends to form Re-Accumulation Ranges after the Halving. Another analysis also supports the idea of a prolonged consolidation phase, comparing the current market to the early stages of the Bitcoin bull market in 2016.
The consolidation phase is not only reflected in the price of Bitcoin but also in miner activity. Since the halving, which reduced miners’ rewards by 50%, there has been a new “capitulation” phase. This phase is measured by the Hash Ribbons metric, which compares the 30-day average hashrate to its 60-day equivalent. When the former drops below the latter, it indicates a period of capitulation. Historically, these periods have signaled buying opportunities.
However, despite the current consolidation phase, experts believe that Bitcoin will eventually break its all-time highs. Willy Woo, creator of the onchain statistics platform Woobull, commented that more pain and boredom need to play out before Bitcoin can reach new highs.
It’s important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research before making any investment decisions.