The crypto market is experiencing an eventful 2024, marked by significant price fluctuations. However, as we continue, eyes turn back to Bitcoin. Despite a current consolidation phase, signs of a bullish recovery are increasing.
Temporary consolidation of Bitcoin
Although Bitcoin recently crossed the symbolic $70,000 mark, boosted by speculation surrounding the approval of an Ethereum ETF, it has failed to maintain these high levels. Indeed, selling pressure brought BTC below $70,000. However, this consolidation appears to be only temporary, as historical trends suggest that a bullish breakout may be imminent.
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 flagship crypto to realign itself with previous halving cycles, thus paving the way for a more sustainable rally.
An opportunity for investors to seize
For sophisticated 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 Bitcoin's hourly chart, suggesting near-term rebound potential.
Long-term Bitcoin holders (hodlers) appear determined to hold on to their holdings, even against prices above $70,000. This reluctance to sell underscores the growing perception of Bitcoin as a store of value rather than just a speculative asset.
Right now, the crucial support level for Bitcoin lies around $67,500. Holding above this level could pave the way for a rally towards $74,500. However, if BTC were to give up this support, a further correction of 5% towards $64,000 would be possible.
Although Bitcoin is currently going through a consolidation phase, all signals are pointing towards an upcoming bullish rally. Whether it is technical analyses, on-chain indicators or the behavior of hodlers, everything indicates that the flagship crypto is preparing for a new upward cycle. Savvy investors would therefore be well advised to remain attentive to upcoming developments in the crypto markets.
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