(Kitco News) – Bitcoin (BTC) continued to see volatile price action above $60,000 in early trading on Friday after a rapid sell-off saw the top crypto dump from support at $63,000 to $60,800, catching many off guard and leading to the liquidation of $62.13 million in long positions over the course of an hour.
BTC/USD Chart by TradingView
At the time of writing, Bitcoin trades at $61,041, a decrease of 1.14% on the 24-hour chart.
Sideways price action following a halving is par for the course when it comes to Bitcoin trading, and the more time that passes, the more the current cycle shows similarities to previous halvings despite Bitcoin hitting a new all-time high pre-halving for the first time in history.
“The more Bitcoin consolidates anywhere between current price levels & $70,000 after the Halving... The more this cycle will decelerate and resynchronise with its regular historically-recurring Halving Cycle with a Bull Market peak in mid-September/October 2025,” tweeted market analyst Rekt Capital. “Current rate of cycle acceleration has been reduced from 260 days to ~210 days, thanks to Bitcoin's current two-month consolidation period.”
In a follow-up post, he noted that “The Bitcoin ‘Post-Halving’ Danger Zone (purple) is over,” and warned those still sitting on the sidelines that, “Bitcoin won't remain at the bottom of this Re-Accumulation Range forever. Enjoy it while it lasts.”
The co-founders of on-chain data firm Glassnode agree that things are looking long-term bullish, tweeting, “Bitcoin still looks like it is about to BLOW higher!” on Thursday.
“Last week's candle was a Reversal Candle - a Hammer with a long Wick. Price moved back into the Pennant Structure. This candle still dominates the structure,” they said. “This week's pullback hence seems like healthy Correction before higher. Corrections often pull back either 50% or 61.8% of the previous Impulse move.”
Mister Crypto agreed with this assessment, saying a “reversal is imminent” following the appearance of a “bullish hammer candle” on the weekly chart.
#Bitcoin Weekly Bullish Hammer Candle!
Reversal is imminent. pic.twitter.com/0WK2ZspFjw— Mister Crypto (@misterrcrypto) May 7, 2024
Market analyst Captain Faibik highlighted Bitcoin’s ongoing consolidation inside of a falling wedge pattern, saying a “Breakout is just a matter of time,” and BTC could climb to $78,000 shortly.
$BTC is Still consolidating in Falling Wedge pattern, and Breakout is just a matter of time..
If the breakout is Successful, we can Expect the next Bullish Rally to 78k in the Coming day. ?
Trust the Process..⌛️#Crypto #Bitcoin #BTC pic.twitter.com/5KC2rMMdVB— Captain Faibik (@CryptoFaibik) May 10, 2024
And for those looking for an indicator that can more clearly identify when the tide shifts in favor of bulls, crypto researcher Axel Adler Jr. highlighted the “Market Power indicator,” saying that when this “metric turns positive, the market will have a chance to move higher.”
The Market Power indicator, which takes into account key futures metrics, has cooled from 98% to 60%, but monthly changes are still in the red zone at -0.06.
As soon as the metric turns positive, the market will have a chance to move higher. pic.twitter.com/GKMDAiqy2j— Axel ?? Adler Jr (@AxelAdlerJr) May 10, 2024
