6 months aside? Bitcoin price action looks like 2023 lull.

If early bull market behavior repeats itself, Bitcoin is months away from consolidating.

In a recent market commentary, renowned trader and analyst Rect Capital drew a new comparison between Bitcoin (BTC) price action this year and 2023.

BTC price will form a “similar-looking range” until 2023.

Bitcoin may be stretched tight after its latest block grant halving in April, but the fact that BTC's price has risen shouldn't worry bulls, Rekt Capital suggests.

Looking at past and current levels of the Bitcoin bull market, as recently as 2023, BTC/USD has shown that it has experienced long periods of volatile movements.

“Bitcoin tends to create re-accumulation regions after a decline,” he summarized on X.

But we've seen Bitcoin form a similar-looking range during this cycle (blue circle).

The accompanying chart directly compares the current situation with the multi-month consolidation phase spanning the second and third quarters of 2023.

If such a setup exists, Bitcoin will remain in the narrow trading corridor for several months.

Other analysts have argued that this week's BTC price correction is “long overdue” based on previous bull markets.

Here, a chart compares 2024 to the early innings of the Bitcoin bull market in mid-2016.

Bitcoin hash rate in limbo with price

According to Cointelegraph, the so-called “regrouping phase” is reflected not only in the price, but also in the mining operations.

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Since the 50% halving of miners' payouts, a new “capital” has been launched with the popular Hash Ribbons metric.

This compares the 30-day average Hashrate to its 60-day counterpart, and when the former falls below the latter, a “cap” begins. Historically, such periods have represented favorable buying opportunities, the last of which was in Q3 2023.

“I know it's going to be hated, but BTC won't break all-time unless it goes through a lot of pain and boredom,” Willy Woo of onchain statistics platform Wubul commented on the event this week.

“On the bright side, the miners are crawling and when they pass, it always ends in a big rally. Look for compressions in this ribbon. Buy and stay in these regions.

This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.