Bitcoin’s historical positioning suggests a strong bullish trend looming
Bitcoin’s price action of late has been lackluster, providing investors and analysts alike with little information on the status of its macro trend.
However, this continued side trade may be unprecedented, as a look at the cryptocurrency’s post-halving price action historically suggests that this may simply be one of the initial phases of your next rush to the intense upside.
An analyst reflected on this possibility in a tweet, pointing out striking similarities between Bitcoin’s recent price action and the sight in past years.
It is also possible that this consolidation phase will provide BTC with the fuel necessary to maintain its next uptrend.
Another analyst recently noted that the upcoming breakout move will result in a cascade of liquidations, helping to fan the flames of the next trend.
Assuming this upcoming breakout favors buyers, a sell-side winding cascade could cause a violent upward move, similar to the winding-induced collapse seen in early March.
History shows Bitcoin is about to enter its next bullish phase
Bitcoin’s recent price action has done little to lend itself to understanding the current state of crypto’s macro trend.
BTC has been hovering between $ 9,000 and $ 10,000, and this trading range has narrowed significantly over the past few weeks as it is now trading around $ 9,200.
This has driven crypto volatility to a record low, which seems to suggest that a significant move is brewing.
In the past, episodes of such low volatility have been followed by movements of 30% or more.
There is a good chance that a similar type of movement will occur once Bitcoin begins to develop a more defined trend
While talking about Bitcoin’s historical positioning, one analyst noted that he is firmly optimistic about the benchmark cryptocurrency.
He offered a chart showing that the cryptocurrency tends to consolidate after halving and halve its mining rewards, and this phase ultimately results in it entering a new parabolic cycle.
If history repeats itself, and there is no guarantee that it will, the cryptocurrency could be well positioned to see a noticeable rise towards the end of the year.
What could help fuel this next parabolic movement?
As for what could potentially fuel this potentially parabolic move in the coming months, an analyst recently noted that Bitcoin is likely to see a “cascade” of liquidations once this trading range breaks.
NewsBTC reported on this possibility yesterday, quoting the analyst who said:
Bitcoin is so compressed that any breakout will likely cause dominoes to drop. Even the hitting mid-day stop groups should be enough to carry the long-term position areas to launch the waterfall. ”
That said, bulls must gain control of crypto in the short term, as an upside breakout could create a massive influx of sell-side liquidations that helps drive up the price of Bitcoin.
Disclaimer: This press release is for informational purposes information does not constitute investment advice or an offer to invest. The views expressed in this article are those of the author and do not necessarily represent the views of infocoin, and should not be attributed to, Infocoin.