Bitcoin (BTC) has struggled to surpass its highest ever price of $73,000, reached in March. After hitting this record, the price dropped to $60,000 but managed to recover, though it couldn’t break above $72,000. It then fell again to $56,000 but bounced back.
Bulls (investors betting on higher prices) made several attempts to push Bitcoin above its all-time high, but each effort fell short, with the price unable to surpass $71,000. This week, Bitcoin again failed to break past $71,000. This has prompted some analysts to look into what could be behind the price action.
Gert van Lagen, a renowned analyst, offers a compelling perspective on this ongoing struggle. According to his analysis, long-term Bitcoin holders have been distributing their acquired coins to new investors, particularly those investing through Exchange-Traded Funds (ETFs). This distribution pattern has historically preceded strong parabolic price movements, followed by a subsequent market correction or bear phase.
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Show more +On the other hand, the analyst known as Mags highlights the prolonged consolidation phase that Bitcoin is currently experiencing near its all-time highs. Mags notes that the current consolidation period of 87 days and counting is the longest in Bitcoin’s history, surpassing the 48-day consolidation observed in 2017 and the 21-day period in 2020. This extended period of price stability is seen as a precursor to a potential breakout and a significant upside rally.
The reasons behind Bitcoin’s inability to breach the $70,000 barrier can be attributed to various factors, including market dynamics, investor sentiment, and the interplay between long-term holders and newcomers to the market.
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