How Long Will the Bitcoin Price Consolidation Last?
Since retracing its all-time high above $73,800, Bitcoin price has been consolidating in a wide range between $53,000 and $72,000.
Related: ‘Very Bullish' Weekly Close – 5 Things to Know in Bitcoin This Week
Still, according to technical chart patterns and various indicators, the Bitcoin (BTC) rally may be coming to an end and the price may be on the way out.
BTC/USD Daily Chart. Source: TradingView
The strengthening of the price of Bitcoin will produce a “more bright effect”.
According to crypto analyst Rect Capital, on October 27, Bitcoin may end its consolidation after experiencing a weekly breakout.
On October 27, in an analysis on X, Rekt Capital Bitcoin is close to achieving a weekly close above $67,900.
According to data from Cointelegraph Markets Pro and TradingView, Bitcoin's high price action between October 26 and 27 produced the pioneer cryptocurrency's weekly close of $67,938, a “bullish effect” according to Rekt Capital.
“Bitcoin is once again getting very close to positioning itself for a more aggressive outcome.”
BTC/USD Weekly Chart. Source: Rect Capital
Historically, bitcoin has peaked between 518 and 550 days after a halving, Rect Capital said in a previous post.
While the post-halving consolidation period is long, “Bitcoin is still accelerating roughly 35 days or so into this cycle,” the analyst added.
“So the stronger Bitcoin gets after the halving, the better it will be to match this current cycle with a traditional halving cycle.”
BTC/USD Weekly Chart. Source: Rect Capital
BTC price consolidation ends – Bollinger Bands
The expectation of a price crash in BTC remains in the background as suggested by the Bitcoin Volatility Indicator.
For Bitcoin analyst “The Bull” Severino, the tightening of the conditions of the bullion bands in two weeks indicates that a significant “big move” is coming.
The width of Bollinger Bands, a well-known volatility and momentum indicator, is currently “among the three tightest in history.”
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According to his analysis, as shown in the chart below, the other two times the two-week Bollinger Bands narrowed were in October 2023 and September 2015.
In October 2023, the BTC/USD pair rose from $26,500, a 180% increase, to an all-time high of $73,835 in March 2024.
The other time was in September 2015, when BTC price reached a 2017 all-time high near $20,000 before an 8,300% rally.
BTC/USD two week chart. Source: Source: Tony “Bull” Severino
If history repeats itself, Bitcoin may soon break out of an unprecedented consolidation in the next few months.
A two-week tight Bollinger Bands signaled the continuation of the Bitcoin bull market, according to a fellow analyst at CryptoCon.
“This is one of the longest periods spent in the low volatility zone of the weekly bowling band width,” Cryptokon said in another post on X.
“The longer the merger, the higher it will be.”
Source: Cryptocon
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.
