The world’s largest cryptocurrency, Bitcoin (BTC), has been consolidating over the past week
The world’s largest cryptocurrency, Bitcoin (BTC), has been making headlines as it consolidates between $67,000 and $70,000 after a recent price correction. This consolidation comes as inflows into the US spot Bitcoin ETF market have reignited, and selling pressure has cooled off.
According to Julio Moreno, head of research at CryptoQuant, the current Bitcoin price level of $70,000 shows lower selling pressure compared to earlier this year. Traders are holding onto their profits, with unrealized gains at only 3%, indicating that heavy selling has subsided.
Santiment data also reveals that Bitcoin has surpassed a $70,000 market capitalization, even during a holiday break in the US stock market. This positive performance independent of the stock market is seen as a bullish sign for Bitcoin.
Despite this positive momentum, crypto analyst Rekt Capital notes that Bitcoin’s latest weekly candle closed below the range high resistance, suggesting further consolidation in the $60,000 to $70,000 range. However, historical patterns indicate that Bitcoin tends to consolidate before a significant price surge.
As Bitcoin enters a critical juncture in its current bull cycle, investors are hopeful for a potential parabolic rally. With BTC currently trading at $70,200 and showing a 2% gain in the past 24 hours, all eyes are on the cryptocurrency as it navigates this consolidation phase towards a potential breakout.
Featured image from Shutterstock, chart from TradingView.com.