Cryptocurrency traders had a brief opportunity to pause and take stock of where things are on June 16, as the incessant selling that has hit Bitcoin (BTC) and the market in general over the past week began to wear off. yield despite the ongoing sell-off in traditional markets. .
Data from Cointelegraph Markets Pro and TradingView shows that after rising to a high of $23,000 in the early trading hours of June 16, the price of Bitcoin slowly trended lower due to declining trading volume to reach a $20,765 minimum.
BTC/USDT 1-day chart. Source: TradingView
Here is what several analysts in the market are saying about the prospects for Bitcoin moving forward as crypto traders try to to determine if the bottom has been reached or if more dips lie ahead.
Look for a multi-month consolidation at the 200-Week MA
Analyst and pseudonymous Twitter user Rekt Capital discussed a macro perspective of the journey Bitcoin has taken over the years and how its past can offer insights into current market settings. aware the chart below highlights BTC’s behavior near its 200-week moving average (MA).
BTC/USD 1-week chart. Source: Twitter
“If #BTC continues to hold the orange 200-week MA as support and the black 200-week EMA as resistance… $BTC could form an accumulation range here, just like in 2018. This would allow for multi-month consolidation even as until December 2022.”
If this is the scenario that plays out, then crypto traders need not rush to accumulate BTC, a point made by crypto trader and pseudonymous Twitter user Altcoin Sherpa, who aware various charts highlighting the amount of time BTC spent in previous accumulation phases.
BTC/USD 1-week chart. Source: Twitter
The longest accumulation period observed by Altcoin Sherpa is the 287-day span outlined in the chart above. Other examples provided include the 133 accrual days between November 2018 and April 2019 and the 63 accrual days between May 2020 and July 2020.
altcoin sherap said,
“You likely have plenty of time to bottom out during the buildup phase. #Bitcoin takes a while to form and you should probably go out and touch some grass instead of catching a knife.”
Bitcoin could claim $25,000, if we’re lucky
Cryptocurrency trader Nebraskangooner offered a more positive take on the latest Bitcoin developments, who provided the following chart indicates that “the lower Fibonacci level has been reached”.
BTC/USDT 1-week chart. Source: Twitter
“Let’s see if the daily can close strong above resistance and then we have an opportunity at $25,000 and possibly $30,000. For the first time in months, we might finally be ready for the bounce everyone has been asking for from $40K.”
Related: More Downside Expected, But Multiple Data Points Suggest Bitcoin Is Undervalued
The RSI 1000 offers a bullish signal
Another trader who has spotted a potentially bullish signal on the BTC chart is pseudonymous Twitter user TAnalyst, who aware The chart below highlights the recent low of the Relative Strength Index (RSI) 1000.
BTC/USD 1-day chart against RSI 1000. Source: Twitter
“#bitcoin Only on bottom days, BEFORE THE BULL RUNS, is the daily RSI (1000) below 50. Today: RSI (1000) = 49.91. Conclude.”
Based on the history of an RSI 1000 score falling below 50, the price of Bitcoin could soon start moving higher.
Perhaps the best summary of the current state of the Bitcoin market and the confusion it is causing crypto traders was offered by crypto educator IncomeSharks.
#bitcoin– At a price where selling short no longer makes sense. But also at a price that longing for is still very risky. Unless you use strict risk management, this is a spot buy zone for most. It is okay to wait for a trend to develop to start trading again.
– IncomeSharks (@IncomeSharks) June 16, 2022
The total cryptocurrency market capitalization is now $905 billion and the dominance rate of Bitcoin is 44.3%
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should do your own research when making a decision.
This post Bitcoin Traders Expect a “Long Consolidation” Phase Now that BTC Trades Below $21K
was published first on https://cointelegraph.com/news/bitcoin-traders-expect-a-long-consolidation-phase-now-that-btc-trades-below-21k