Bitcoin consolidation continues, with prices hovering below $71,500, a critical threshold that could signal the next rally. Despite recent fluctuations, Bitcoin’s long-term holders remain steadfast, indicating strong confidence in BTC’s future potential.
Bitcoin’s price recently surged past $72,000, driven by positive sentiment around the approval chances for a spot Ethereum ETF. However, this bullish momentum was short-lived, with prices slipping back below $70,000.
Historically, Bitcoin has exhibited periods of consolidation before significant breakouts. Currently, a weekly close above $71,500 is seen as a key indicator that could trigger the next rally phase. However, market experts suggest that consolidation may persist for several more weeks, aligning with historical patterns.
Crypto analyst Ali Martinez highlights the accuracy of the TD Sequential indicator in predicting Bitcoin price movements. Martinez notes that the indicator currently shows a buy signal, suggesting a potential rebound.
Additionally, analyst Rekt Capital emphasizes the importance of a weekly candle close above $71,500 to confirm a breakout from the current re-accumulation range. This consolidation period could help realign Bitcoin with historical halving cycles, potentially extending the duration of the bull market.
Despite these fluctuations, Ki Young Ju has spotted that long-term holders who remain committed are showing a reluctance to sell even at higher prices. This behavior underscores Bitcoin’s growing perception as a store of wealth rather than merely a trading asset.
On the institutional front, Bitcoin ETFs have seen a significant influx of capital. Spot On Chain data indicates a robust $307 million net inflow into Bitcoin spot ETFs on May 21 alone, marking a week of positive movements. This trend is evident in Grayscale’s ETF GBTC and BlackRock’s ETF IBIT, with the latter recording a substantial $290 million inflow in a single day.
As of press time, Bitcoin is trading on a bearish note amid the recent market recovery. As of press time, BTC is exchanging hands at $70,070, down by more than 1% in the past 24 hours. Despite the recent pullback, BTC remains bullish on the weekly and monthly charts.
