Parabolic rally? Bitcoin Gains $70,000, Trade Paper Profits Fall 3%
A slight 20% price decline that sent Bitcoin Gains Trade Paper (BTC) as low as $56,400 in early May has caused it to consolidate during the past week, trading between $67,000 and $70,000. This comes after Bitcoin (BTC), the largest cryptocurrency in the world, saw a temporary price correction of 20%.
This consolidation phase occurs when inflows into the US spot Bitcoin ETF market have resumed, and selling pressure appears to have slowed down, both in the ETF market and among Bitcoin investors, more generally speaking.
Bitcoin Selling Pressure Fades
According to Julio Moreno, the head of research at CryptoQuant, a company specializing in on-chain market analytics, the current price level of $70,000 for Bitcoin Gains Trade Paper differs from when it reached that mark for the last time in March. According to Moreno, traders are no longer applying as much selling pressure because unrealized profits are only about 3%, down from 69% at the start of March. As seen in the image below, considerable “heavy selling” has been used up.
Regardless, the Memorial Day vacation saw the US stock exchange shut. Sentiment data reveals that Bitcoin has again surpassed a market capitalization of $70,000. This occurred even though the market was closed. Sentiment, a market intelligence platform, considers this a favorable indicator since it. Illustrates Bitcoin’s capacity to perform favorably on days when it is not strongly associated with the primary stock market. This has been the case for a significant portion of the year 2022.
Final Pre-Breakout Consolidation Phase
A cryptocurrency expert from Rekt Capital has observed that Bitcoin’s most recent weekly candle fell below the range high resistance of its ongoing “re-accumulation” phase, which covers approximately $60,000 to $70,000. This is even though the cryptocurrency is experiencing positive momentum. According to Rekt Capital’s theory, the leading cryptocurrency will likely continue consolidating inside this range. The current bull cycle comprises two phases: the post-halving re-accumulation phase and the “parabolic rally phase.”
Before beginning the most impressive stretch of its bull cycles, Bitcoin Gains Trade Paper has historically tended to consolidate around all-time highs. This has been the case throughout its history. The expert claims that Bitcoin has been considerably consolidating at current highs. Time now, particularly compared to the standards of past cycles.
Even though there is still an opportunity for additional sideways trading at these elevated price levels, the amount of time left in this phase will gradually decrease. This leads to the view that the long-awaited post-halving bounces. In conjunction with restoring investor mood, it is prepared to push. The most prominent cryptocurrency on the market to even higher levels than the current $73,700 reached in the middle of March.
Therefore, it seems Bitcoin is about to hit a pivotal point in its current bull run. The current market reversal and re-accumulation may be fleeting if the patterns persist. Bitcoin’s 2% gain over the last 24 hours brings its monthly gain to 10%. At the moment, one bitcoin will set you back $70,200.
