Parabolic Rally In The Making? Bitcoin Regains $70,000 As Traders’ Paper Profits Collapse To 3%
The world's largest cryptocurrency, Bitcoin (BTC), has been consolidating over the past week, trading between $67,000 and $70,000 after seeing a brief 20% price correction that took it down to $56,400 in early May.
this The period of unification This comes as flows return to the US Bitcoin ETF market, and selling pressure appears to have diminished, both in the ETF market and among Bitcoin investors more broadly.
Bitcoin selling pressure is fading
According to For Julio Moreno, head of research at on-chain market analytics firm CryptoQuant, Bitcoin's current price level of $70,000 is different from when it last reached that level in March.
Moreno notes that traders are now exerting much less selling pressure, with unrealized gains amounting to only about 3%, compared to 69% in early March. This indicates that much of the “sell-off” has been exhausted, as shown in the chart below.
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saint Data It also appears that Bitcoin has once again surpassed the market cap of $70,000, even as the US stock market is halted due to the Memorial Day holiday.
Market intelligence platform Santiment sees this as an encouraging sign, as it demonstrates BTC's ability to perform positively on days when it is not closely correlated with fundamental events. Stock marketwhich has been the case for most of 2022.
Final consolidation stage before breakout
Despite this positive momentum, cryptocurrency analyst Rekt Capital weighed in male The latest weekly candle for Bitcoin closed below the high resistance band of the ongoing “re-accumulation” phase, which extends roughly from $60,000 to $70,000.
This will likely doom the leading cryptocurrency to further consolidation within this range, in line with Rekt Capital's policy. thesis There are still two phases in the current bull cycle: the reaccumulation phase after the halving and the “parabolic rise phase.”
Historically, Bitcoin has tended to consolidate around all-time highs before embarking on the most illustrative phase of its bullish cycles. According to the analyst, Bitcoin already was Strengthen At these highs for some time now, especially by the standards of previous cycles.
While there is still room for more sideways trading at these high price levels, the time remaining at this point is slowly running out. This leads to the belief that it is long overdue After half The rally, coupled with renewed investor sentiment, is expected to lift the market's largest cryptocurrency to levels above the current level of $73,700 reached in mid-March.
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As such, Bitcoin appears to be entering a critical juncture in its current bull cycle. Monotheism and Reaccumulation which have dominated the market in recent months could soon give way to the next parabolic rally, if historical patterns continue.
As of now, Bitcoin is up 2% in the past 24 hours, on top of its 10% positive move in the past month alone. Bitcoin is currently trading at $70,200.
Featured image from Shutterstock, chart from TradingView.com
