Bitcoin (BTC), the largest cryptocurrency asset continues to attract positive sentiment due to its recent price uptick. Popular crypto analyst and trader Mags has delved into the current price action of BTC, highlighting that the crypto asset’s current consolidation phase is the longest in its history, unfolding in the midst of an ongoing bull cycle.
This extended period of consolidation often precedes substantial volatility, which raises the possibility that Bitcoin could be preparing for a big comeback.
End Of Consolidation Phase To Trigger Notable Price Movement
For a record-breaking amount of time (87 days), Bitcoin has been trading in an extremely narrow range that has outlasted prior periods of consolidation. Mags points out that despite the general bullish feeling in the market, which usually propels more substantial price swings, there is a lot of consolidation taking on.
According to the crypto expert, before entering price recovery, BTC often consolidates around its all-time highs, as seen in past bull cycles. However, the current consolidation is the longest of all of them.
During the 2027 bull cycle, Mags noted that the crypto asset consolidated for about 48 days before breaking out on the upside. Also, in 2020, BTC witnessed a 21-day consolidation period before regaining its upward momentum.
Meanwhile, in this current cycle, BTC has been consolidating for the past 87 days and still counting, surpassing the durations of previous consolidation phases. Thus, the crypto analyst claims there will be a huge upside rise whenever the price breaks out of this stabilizing phase.
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Each cycle, we have noticed a similar pattern where Bitcoin consolidates near all-time highs before it enters price discovery. Out of all the consolidations, the current one is the longest.
Although the recent stabilizing phase has turned out to be the longest, crypto expert, Milky Bull has underscored the significance of the development. Milky Bull is confident that the consolidation will lead to significant price movements. “The longer the consolidation the higher it moves when it breaks out,” the expert stated.
Furthermore, he has pointed out a bullish divergence for BTC, which also indicates a robust price strength. Should the crypto asset break out of the current consolidation phase, Milky Bull anticipates a surge to the $85,000 price level before rising to the $110,000 mark.
Bitcoin Demonstrating Optimistic Sentiment
Following a steep decline over the weekend that caused the cryptocurrency to retreat from recent highs, Bitcoin’s price starts the week on a positive note. The weekend decline was caused by a drop in the entire crypto market, which led to major cryptocurrencies’ value plummeting.
However, Bitcoin appears to have rebounded alongside several other notable crypto assets. Due to its rebound, the digital asset has gained investor interest and generated new sentiment about its potential for long-term growth.
At the time of writing, BTC was trading above $65,000, indicating a 0.15% increase in the last 24 hours. Its market capitalization and trading volume were also up by 0.15% and 40% in the past day.
Featured image from iStock, chart from Tradingview.com
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