Wild ride for Bitcoin as consolidation hits 128-Day mark

Bitcoin (BTC) current consolidation phase near all-time highs has stretched to an unprecedented 128 days, surpassing previous cycles and setting the stage for a potential breakout. This comes as political developments threaten to inject volatility into the crypto markets.

As per analyst Mags, Bitcoin’s current consolidation phase has surpassed previous cycles significantly. In 2017, BTC went through a 48-day consolidation before a breakout, whereas in 2020, the period reduced to only 21 days. The extended nature of the ongoing phase hints at a potential imminent shift.

#Bitcoin – This is the longest consolidation

Each cycle, we have noticed a similar pattern where Bitcoin consolidates near the all-time highs before it enters price discovery.

Out of all consolidations, the current one is the longest.

In 2017, BTC consolidated for 48 days… pic.twitter.com/yuhLrOpPxR
— Mags (@thescalpingpro) July 20, 2024

Implications of U.S. political news on Bitcoin

Crypto analyst CrypNuevo foresees a rise in market volatility ahead due to the unexpected announcement by U.S. President Joe Biden that he will not run for re-election. CrypNuevo suggests that this development could lead to significant movements in various markets, including Bitcoin.

“We could see a lot of movement across all the markets, including BTC,” CrypNuevo stated, outlining a potential scenario. Where Bitcoin experiences a downward move followed by an upward surge to $68,900.

The analyst describes the current market structure as a “reversal 3 taps pattern,” suggesting a quick downward move may occur first, acting as a long squeeze before targeting higher levels. CrypNuevo speculates that the timing of Biden’s announcement may not be coincidental. Potentially aiming to “shakeout the markets” before the upcoming Federal Open Market Committee (FOMC) meeting on July 31.

I'll update more across the week, but think this has a high chance of playing out.

The next 10 days are going to be wild before FOMC.

Is this timing really a coincidence? I don't think so.
I think they want to shakeout the markets before FOMC. That's all. Thanks for reading 👍
— CrypNuevo 🔨 (@CrypNuevo) July 21, 2024

Both analysts predict an eventful future for Bitcoin. According to Mags, once Bitcoin surpasses its current consolidation phase and establishes a new all-time high, it could trigger a significant upward surge.

Nevertheless, the current phase of Bitcoin sees a pivotal moment with increased consolidation and a potential rise in volatility. This period is critical as the cryptocurrency hovers near its previous peak, keeping investors on edge for the next major development.