With Bitcoin rising and falling again, independent market analyst Sjuul points out that the financing rate for Bitcoin is high and expects a comprehensive adjustment. In his view, this is an opportunity to buy at a low point.
Behind the Bitcoin price correction, what is there?
Will it continue to trade sideways in the future?
Long-term upward trend
Bitcoin has been fluctuating narrowly between $51,000 and $52,500 for over a week. While the second largest cryptocurrency by market value, Ethereum, has shown some strength, it fell back to $2,900 after breaking through $3,000.
In response to this, cryptocurrency trader and analyst Rekt Capital shared the following chart in a post, stating that Bitcoin is experiencing the “last pre-halving pullback” before resuming its upward trend.
Independent market analyst Sjuul points out that the financing rate for Bitcoin is high and warns traders that a comprehensive adjustment is expected. He believes that this is a buying opportunity at a low point that we are all looking for.
Market intelligence company Santiment points out that significant moves by medium-sized traders often serve as excellent signals for profit-taking and buying at a low point. “Stablecoin holders with holdings of $10,000 to $100,000 have increased their USDT holdings by $44.3 million in the past two weeks,” indicating that they may be waiting for a pullback and preparing to buy at a low point.
An analyst points out that $53,000 is a significant resistance level for Bitcoin’s upward movement. This rejection could indicate further consolidation below this level, which aligns with the weekly Ichimoku Cloud trend chart. This price range is a key resistance area on the long-term chart that has limited the upward trend in the second half of 2021.
Traders and market analysts believe that the repeated oscillation is part of the “five stages” of the Bitcoin halving cycle, and Bitcoin may experience a pullback before the halving, followed by a widely anticipated parabolic upward trend.
After the launch of the Bitcoin ETF at the end of January, which resulted in a price increase of over 30%, the failed attempt to break through $53,000 could indicate further consolidation within the current range. Vetle Lunde, a senior analyst at K33 Research, stated, “The current price level is an important technical level for BTC, as it coincides with the peak of the ‘El Salvador’ rebound in September 2021 and the resistance level before the crash on December 4 of the same year.”
An analyst from cryptocurrency analysis company Swissblock points out that the stagnation of Bitcoin’s momentum may indicate further pullbacks and potential buying opportunities.
CryptoCon, a cryptocurrency technical analyst, points out that the $53,000 range is also a sign of the top of the previous market cycle in the weekly Ichimoku Cloud. This momentum and trend indicator has been a major resistance level for BTC price in 2016 and 2019, while the breakthroughs in early 2017 and late 2020 cleared the way for new highs until they reached historical highs.
According to a chart released by CryptoCon on X, Bitcoin’s price first recovered to similar levels in the previous two bull markets, followed by a long consolidation period, and the price breakthrough occurred in the later stages of the Bitcoin market cycle, after the four-year Bitcoin halving event.
CryptoCon stated in the post, “The two times the Ichimoku Cloud marked the middle peak, rejection point, and long consolidation period. Breaking through this point will happen almost a year earlier than usual.”
Data from IntoTheBlock shows that Bitcoin traders are focused on the next stage of the current rebound. The IOMAP model shows a very strong support level for Bitcoin between $9,300 and $9,600, with 732,000 BTC bought by 898,000 holders in this range. There is a bullish position of 1 million addresses around $9,800, which can be considered as a resistance level for BTC to reach $10,000, as investors who previously bought at this price may want to achieve breakeven.
Independent analyst Ali states that bullish buyers are now preparing for a new “battle” to defend the support area between $52,000 and $51,700, and whether the closing price is above or below this area “will determine the direction of BTC’s next move.”
Related Reports:
Grayscale report: Countdown to Bitcoin halving in 2024, what’s different this time?
After the Bitcoin narrative craze, what else does the BTC ecosystem need?
M6 Cryptocurrency Weekly Report: ETF continues to drive Bitcoin and INJ ecosystem airdrops.