Bitcoin traders expect a ‘long consolidation’ phase now that BTC trades below $21K

The crypto traders had a moment to take stock and pause on June 16, as the relentless selling that has hit Bitcoin (BTC), and the wider market over this past week began to ease despite a continuing sell-off in traditional markets.

Cointelegraph Markets Pro and TradingView data show that Bitcoin prices have declined over time due to decreased trading volume. They reached a peak of $23,000 on June 16th.

BTC/USDT 1-day chart. Source: TradingView

As crypto traders attempt to figure out if Bitcoin is at its bottom or if it has more upside, here are the views of several market analysts.

Expect multi-month consolidation during the 200-week MA

Analyst and pseudonymous user on Twitter, Rekt Capital posted this chart showing the behavior of Bitcoin near its 200-week moving mean (MA) to give a macro view of Bitcoin’s journey over the years.

BTC/USD 1-week chart. Source: Twitter

Rekt Capital said,

“If #BTC holds the orange 200-week MA figures as support and black 200-week EMA figures resistance, $BTC could form an Accumulation range here just like in 2018. This would allow multi-month consolidation up to December 2022.

Crypto traders should not rush to acquire BTC if this happens. This was noted by Altcoin Sherpa (a pseudonymous crypto trader) who posted numerous charts that highlighted the time BTC spent in previous accumulation stages.

BTC/USD 1-week chart. Source: Twitter

Altcoin Sherpa’s longest accumulation period is the 287-day span shown in the chart. Altcoin Sherpa also provided examples of the 133-day accumulation period between November 2018 & April 2019, and the 63-day accumulation period between May 2020 & July 2020.

Altcoin Sherap stated,

It’s possible that you will have plenty of time to catch the bottom in the accumulation phase. It takes #Bitcoin a while to form its bottom. You should go out and touch the grass, not knife catching.

Bitcoin could be reclaimed $25,000 if we are lucky

Crypto trader Nebraskangooner offered a more positive view on recent developments in Bitcoin. He provided the following chart, noting that the “lower Fibonacci Level” has been reached.

BTC/USDT 1-week chart. Source: Twitter

Nebraskangooner said,

Let’s see if daily closes above resistance. Then we could have a chance at $25,000 or possibly the mid $30K’s. We might finally be ready to see the bounce we have been waiting for since $40K, for the first time in months.

Similar: While there is a possibility of further downside, multiple data points indicate that Bitcoin is still undervalued

Bullish signals are provided by the RSI 1000

A trader has also identified a potential bullish signal in the chart for BTC. This is pseudonymous Twitter User TAnalyst. He posted the following chart highlighting recent lows for the relative strength indicator (RSI 1000).

BTC/USD vs. RSI1000 1-day chart. Source: Twitter

TAnalyst stated,

“#Bitcoin Only on the bottom days BEFORE BULL RUNS is the daily RSI(1000), below 50. Today RSI(1000), = 49.91 Conclude.”

The history of Bitcoin’s RSI 1000 score being below 50 suggests that the Bitcoin price could soon rise.

IncomeSharks, a crypto educator, provided perhaps the most comprehensive overview of the current Bitcoin market state and the confusion it is causing crypto trader.

#Bitcoin – At a price that makes no sense to shorten. However, it is also very risky to long. This zone is only for those who can manage their risk well. To trade again, it’s okay to wait for a trend develop.
— IncomeSharks (@IncomeSharks) June 16, 2022

The total cryptocurrency market is now worth $905 billion. Bitcoin’s dominance rate at 44.3% is the current record.

com. You should do your research before making any investment or trading decision.

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Eileen Wilson

Eileen Wilson –Technology and Energy My Name is Eileen Wilson with more than 5 years of experience in the Stock market industry, I am energetic about Technology news, started my career as an author then, later climbing my way up towards success into senior positions. I can consider myself as the backbone behind the success and growth of topmagazinewire.com with a dream to expand the reach out of the industry on a global scale. I am also a contributor and an editor of the Technology and Energy category. I experienced a critical analysis of companies and extracted the most noteworthy information for our vibrant investor network.

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