Bitcoin succumbs or starts a new consolidation range?
Introduction
I wanted to start this post with the following question Does Bitcoin succumb or begin a new consolidation range, a bit to establish feedback with the multiple points of view that exist around the price action of the main cryptocurrency.
For those of you who follow my blog closely, you may have noticed that my views on Bitcoin and the crypto market do not stem from biased or media-induced assessments, in a way perhaps the approaches do have some optimism but somehow part of my tracking of the price action and statistical reading of the historical behavior of the bitcoin price.
From my perspective, the price action executed by Bitcoin and the entire crypto market alludes to a new correction that will provide us with cyclical sideways movements between $45,000 and $50,000 weeks element that I believe allows the entire crypto market to consolidate and preserve its financial stability.
As in other posts I remind you I do not consider myself an expert on Bitcoin or any other cryptocurrency, nor do I consider my opinions reliable enough for you (reader) to refer to and guide your actions, but what I can say is that throughout 2021 the crypto market has been executing this pattern in price action, so, I estimate.
Specifically, I believe that Bitcoin and the crypto market are once again entering a sideways price consolidation zone, a behavior that somehow allows them to maintain financial stability and look for the new target above $70,000.
OBSERVATION:
The cover image was designed by the author: @lupafilotaxia, incorporating image: Source: Criptotendencia
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Hi @lupafilotaxia
I agree with you, we are facing a new stage of accumulation and it only remains to hold.
Wished regards
Hello teacher @janettyanez
It is highly probable that this zone of 45K and 50K will remain for a couple of weeks in the lateral zone before restarting the new upward rebound.
Best regards, you are well.
Greetings friend @lupafilotaxia, what you reflect is very likely what is happening, and I consider it as the healthiest thing for the cryptocurrency market, since a sharp correction by BTC would end up being a bloodbath that can leave out many blockchain projects, which do not have a price yet consolidated in the market.
Hi @chucho27
If you ask me, I do not believe that Bitcoin will make a wider correction or lose the 40K support, I estimate that it is highly probable that we will hold the 50K zone before restarting the new bounce to the upside.
Best regards, you are well.
The truth is that the data does not lie, although it is true that optimism can mow down the analyst's thinking a bit, but the historical data of BITCOIN is cyclical.
Hi @rubenp
That's right, the data doesn't lie and somehow the Bitcoin pattern has interesting cycles that somehow allow us to make an investment plan.
Best regards, you are well.
Hi @lupafilotaxia
If you look at recent flash crashes (recent one and also those two: in may and then september) then you will notice, that mass liquidation always end up consolidation period.
Overall market is still bullish. And I claim that because we're still at record high amount of BTC being stored outside exchanges (locked in defi's or stored at hard wallets).
Once market will start turning bearish, then we will witness inflow of crypto to exchanges. People will keep it in liquid form, ready to sell.
At the same time huge amount of liquidations, which just took place -> this wiped out many so called "bulls" and recent price movement has been greatly result of all those overleveraged long positions. I would not expect much aptite for risk this year = more sideway movements.
So it seem, that we see things in similar fashion.
Cheers, Piotr
Hello dear friend @crypto.piotr
Yes, the previous massive liquidations have led to consolidation zones, and this may not be the exception or at least I hope so, I think it is highly probable that this zone of 45K and 50K will remain in the zone for a couple of weeks. side before restarting the new upward rebound.
Best regards, you are well.