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.

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.

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. 

Related | Ethereum supply on track to hit Pre-Merge levels by year-end