The world’s largest cryptocurrency Bitcoin (BTC) witnessed a surge past $72,000 on greater approval chances for the spot Ethereum ETF. However, the bulls couldn’t hold on to those levels for long as the Bitcoin price faced selling pressure slipping once again under $70,000.
Bitcoin Price Consolidation Continues
On-chain data provider Rekt Capital has analyzed Bitcoin’s current market dynamics, suggesting that a weekly candle close above approximately $71,500 could trigger a breakout from its Re-Accumulation Range. However, historical patterns indicate that Bitcoin is likely to consolidate within this range for several more weeks.
Rekt Capital notes that extended consolidation could help Bitcoin realign with historical halving cycles. The current cycle acceleration stands at around 190 days, an improvement from the 260-day acceleration seen in mid-March when Bitcoin reached new all-time highs.
While investors may be eager for a breakout, such a move would likely result in an accelerated cycle, leading to an earlier peak in Bitcoin’s bull market. Conversely, prolonged consolidation would support synchronization with past halving cycles, potentially extending the duration of the bull run.
“History suggests we should see a typically long one,” Rekt Capital stated, “but Bitcoin is one weekly close above the $71,500 range high from defying historical trends once again”. If so, it can trigger the Bitcoin price rally to $100,000 and more.
On-chain Indicators Show Strength
Popular crypto analyst Ali Martinez has highlighted the accuracy of the TD Sequential indicator in forecasting Bitcoin price movements on the one-hour chart. Martinez notes that the indicator is currently presenting a buy signal, suggesting that Bitcoin ($BTC) is poised for a rebound.
On the other hand, Bitcoin holders are not willing to sell off their coins even as the Bitcoin price inches higher than $70,000. Crypto analyst Ki Young Ju observes that Bitcoin holders are showing a growing tendency to hold rather than sell their assets. This shift indicates that Bitcoin is increasingly being perceived as a store of wealth rather than merely a trading asset.
In the near term, the important support level for Bitcoin would be $67,500. Sustaining this could lead to a rally towards $74,500. However, if the BTC price fails to hold this support, it can further slip to $64,000.
On the other hand, the positive thing is that the Bitcoin ETF inflows continue to remain strong. On May 21, the total net inflow for Bitcoin spot ETFs reached $306 million, marking seven consecutive days of positive inflows. Grayscale’s ETF GBTC experienced no net outflow for the day, while BlackRock’s ETF IBIT saw a single-day inflow of $290 million. The total net asset value of Bitcoin spot ETFs stood at $58.910 billion.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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