The biggest cryptocurrency in the world, Bitcoin (BTC), surged beyond $72,000 due to increased odds of the Ethereum ETF being approved. However, the bulls could not hang on to those levels for long, as selling pressure caused Bitcoin price to drop below $70,000 once more.
Consolidation of Bitcoin Prices Continues
Based on an analysis of the present dynamics of the Bitcoin market, on-chain data source Rekt Capital suggests that a weekly candle close above $71,500 might initiate a breakout from its Re-Accumulation Range. Nonetheless, past trends suggest that Bitcoin will probably continue stabilizing in this range for a few more weeks.
According to Rekt Capital, extended consolidation may aid in Bitcoin’s realignment with previous halving cycles. The cycle acceleration is currently at about 190 days, which is better than the 260 days observed in the middle of March when Bitcoin hit new all-time highs.
Although investors would be anxious for a breakout, this action would accelerate the cycle and cause the Bitcoin bull market to peak faster than expected. On the other hand, a protracted consolidation encourages synchronization with previous halving cycles, which lengthens the bull run’s duration.
According to Rekt Capital, “History suggests we should see a typically long one.” Still, Bitcoin is only one weekly closure above the $71,500 range high away from once again defying past tendencies. If this is the case, the price of Bitcoin may rise to $100,000 or higher.
On-chain Signals Are Robust
Well-known cryptocurrency expert Ali Martinez has emphasized how accurate the TD Sequential indicator is in predicting changes in the price of Bitcoin on an hourly basis. Martinez points out that the indicator is currently showing a buy signal, implying that a rise in the cost of Bitcoin ($BTC) is imminent.
In contrast, even as Bitcoin Price continues to rise and approaches $70,000, its owners are unwilling to sell their holdings. According to cryptocurrency analyst Ki Young Ju, owners of Bitcoin are increasingly choosing to keep their holdings rather than sell them. This change suggests that people’s perceptions of Bitcoin are changing from that of a trading asset to that of a store of wealth.
The critical support level for Bitcoin in the short term is $67,500. If this is maintained, the price may rise to $74,500. However, if it is unable to retain this level, Bitcoin Price may drop as much as $64,000.
However, the fact that inflows into Bitcoin ETFs are still substantial is a good development. After seven days of positive inflows, the total net inflow for Bitcoin spot ETFs reached $306 million on May 21. BlackRock’s ETF IBIT recorded a $290 million single-day inflow, while Grayscale’s ETF GBTC saw no net outflow. The Bitcoin spot ETFs had a total net asset value of $58.910 billion.
