Bitcoin Will Remain Bullish as Long as This Consolidation Structure Holds: Why BTC May Never Close Below $56k Again

According to crypto analysts and traders, Bitcoin’s bullish trend is likely to persist as long as certain key technical structures remain intact. One trader known as “Mags” on X (@thescalpingpro) argues that the current consolidation above Bitcoin’s all-time high is a bullish sign, suggesting a potential continuation of the upward momentum.

Mags explains that in a strong uptrend, price consolidation within a narrow range often forms patterns like flags or rectangles, which typically lead to upside breakouts and act as continuation patterns. However, if the price consolidates and breaks down, failing to reclaim the previous highs, it could signal distribution rather than re-accumulation, potentially leading to a deeper retracement.

Celebrate Dogecoin and Make Big Gains with Doge2014!

Doge2014 raises 500K in days celebrating Dogecoin. Make potentially big profits and get in on exclusive airdrop!

Show more +

Using chart examples, Mags illustrates two scenarios: consolidation breakdown (distribution) and consolidation breakout (re-accumulation). In the distribution scenario, the price breaks out above the previous all-time high but fails to hold, leading to a deeper retracement. Conversely, in the re-accumulation scenario, the price breaks out and consolidates before continuing its upward trajectory.

Applying this analysis to Bitcoin, Mags notes that the current consolidation above the all-time high could be either re-accumulation or distribution. However, if Bitcoin manages to reclaim the $60,000 area before the weekly close, despite intraday wick breakdowns, it would likely indicate a re-accumulation phase, setting the stage for another leg up. Only a weekly close below the all-time high would be considered bearish and could potentially delay the continuation of the bull run for a few months.

Read Also: This Adam and Eve Pattern Breakout Reveals Hedera (HBAR) Next Price Direction as FLOKI Gears for +100% Upside

Another trader, Trader Tardigrade (@TATrader_Alan), presents a bullish case for Bitcoin, suggesting that the cryptocurrency may never close below $56,000 again. According to their analysis, Bitcoin has historically never dropped below the low of the monthly candle during the halving cycle. With the fourth halving’s monthly candle low at $56,000, Trader Tardigrade argues that Bitcoin is likely to continue its upward trajectory from this level.

Adding to the bullish sentiment, crypto influencer Lark Davis (@TheCryptoLark) highlights that spot Bitcoin ETFs have finally ended their streak of outflows. On a recent day, inflows totaled $378.3 million, with Grayscale alone bringing in $63 million, marking the largest day of inflows since March 26th.

While past performance is no guarantee of future results, these analysts’ perspectives suggest that Bitcoin’s bullish momentum could continue, provided key technical structures remain intact and inflows into Bitcoin investment products persist.

Follow us on X (Twitter), CoinMarketCap and Binance Square for more daily crypto updates.
Get all our future calls by joining our FREE Telegram group.

We recommend eToro

Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more
Active user community and social features like news feeds, chats for specific coins available for trading.
Wide range of assets: cryptocurrencies alongside other investment products such as stocks and ETFs.
Copy trading: allows users to copy the trades of leading traders, for free.
User-friendly: eToro’s web-based platform and mobile app are user-friendly and easy to navigate.
intelligent crypto
How are  regular people making returns of as much as 70% in a year with no risk?  By properly setting up a FREE Pionex grid bot - click the button to learn more.
Crypto arbitrage still works like a charm, if you do it right! Check out Alphador, leading crypto arbitrage bot to learn the best way of doing it.

Tags:

Temitope Olatunji
Temitope Olatunji

Temitope is a seasoned writer with over four years of experience. He specializes in Web3 and FinTech topics and enjoys creating content in these areas. He holds both a bachelor's and master's degree in Linguistics. When not writing, he trades forex and plays video games.

CaptainAltcoin
Logo