Bitcoin Trades Below $21,000, Traders Foresee A ‘Long Consolidation’ Phase

Following Bitcoin’s recent decline to 2017 highs, analysts predict a protracted period of consolidation and accumulation for the whole crypto market.

On June 16, crypto traders received a small respite from the persistent selling that had pounded Bitcoin (BTC) and the wider market over the previous week, as despite a continued sell-off in the conventional markets, the unrelenting selling began to subside.

After soaring to a high of $23,000 in the early trading hours on June 16, according to data from Cointelegraph Markets Pro and TradingView, the price of Bitcoin gradually trended down on lower trading volume to a low of $20,765.

At the 200-week MA, expect multi-month consolidation

Analyst and pseudonymous Twitter user Rekt Capital offered a macro view on Bitcoin’s journey over the years and how its past might provide insight into the current market scenario, posting the following chart showcasing BTC’s behavior around its 200-week moving average (MA).

Rekt Capital said that if #BTC continues to maintain the orange 200-week MA as support and the black 200-week EMA acts as resistance. $BTC might create an Accumulation Range here, similar to what happened in 2018. This would allow for multi-month consolidation through to December 2022.

If this scenario plays out, crypto traders do not need to rush to amass BTC, as crypto trader and pseudonymous Twitter user Altcoin Sherpa pointed out in a series of infographics emphasizing the length of time BTC spent in prior accumulation stages.

The 287-day period seen in the graphic above is the longest accumulation period documented by Altcoin Sherpa. Other instances are the 133 days of accumulation from November 2018 to April 2019 and the 63 days of accumulation from May to July 2020.

Altcoin Sherap stated that it’s probable that people will get plenty of opportunity to capture a bottom during the accumulation period. The bottom of #Bitcoin takes a long time to form, so instead of knife catching, go outside and touch some grass.

The RSI 1000 is a bullish indicator

An analyst stated that #Bitcoin, the daily RSI(1000) is only below 50 on bottom days, before bull runs. RSI(1000) is 49.91 today. The price of Bitcoin may soon begin to soar upward, based on the history of an RSI 1000 score going below 50.

Crypto instructor IncomeSharks provided the finest description of the present situation of the Bitcoin market and the uncertainty it is creating crypto traders. The total cryptocurrency market capitalization is currently $905 billion, with Bitcoin commanding 44.3 percent of the market.

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