Bitcoin, the world’s leading cryptocurrency, is currently experiencing a consolidation phase that could potentially lead to a new all-time high, according to a crypto trading analyst. In a recent post on TradingView, the analyst highlighted that Bitcoin’s current price movement is reminiscent of its historical behavior before entering a parabolic rally. The expert pointed out that Bitcoin is consolidating at a symmetrical spot relative to previous cycles, a pattern that has typically signaled a significant upward movement in its price.
Examining the duration of previous cycles, the analyst found that the bottom-to-bottom time range has been consistently around 1400 days, while the bottom-to-top duration of the last two cycles was approximately 1064 days. This consistent pattern suggests that Bitcoin is poised for another substantial rise in value. In fact, the analyst suggested that the potential top for this cycle could range anywhere between $150,000 and $300,000.
While Bitcoin currently faces bearish pressure, the overall sentiment surrounding the asset has also declined. Crypto analysis platform Santiment revealed that bullish calls for Bitcoin on various platforms, including X, Reddit, Telegram, 4Chan, and BitcoinTalk, have significantly dropped, indicating a loss of confidence among traders. However, Santiment also suggested that this decline in trader euphoria could potentially signal a bottom, which could lead to a reversal in the market trend. In such cases, investors often view a bottom as an opportunity to buy since the asset is considered undervalued.
However, cautionary notes have also been raised by other analysts. Ali Martinez, a cryptocurrency analyst, warned traders and investors against premature excitement following Bitcoin’s recent price movements. Martinez emphasized that if Bitcoin’s price drops to $60,700, it could trigger around $22 million in liquidations, which could further impact the market.
Bitcoin’s price remained stable around $63,940 for a few days before declining due to the announcement of Mt. Gox repayments scheduled for July 2024. The subsequent volatility saw Bitcoin fluctuating between $59,000 and $62,000. As a result, the key support level to watch for now is at $60,000.
Please note that the content in this text should not be considered investment advice, as investing in cryptocurrencies is speculative, and there is always a risk of capital loss.