Bitcoin (CRYPTO:BTC) fell below $91,000, a move that aligns with historical post-halving trends, according to prominent technical analysts.
How long will Bitcoin consolidation last?
Technical analyst Kevin highlighted that the Bitcoin 3-day price chart and the Moving Average Convergence and Divergence (MACD) indicator have been reliable in tracking bull market trends.
Historical data shows that MACD downward crossovers often precede consolidation periods of 30 to 174 days. Kevin mentions a potential cyclical pattern:
- Previous consolidations: 164, 30 and 174 days.
- Current Consolidation: 24 days at the moment, which suggests 35-40 days of trading within a range before a breakout.
In another tweet, Kevin pointed out that Bitcoin is facing significant liquidity blocks between $86,000 and $90,000 and $104,000, suggesting possible swings in either direction and price volatility for the month.
Macro caution remains in order until USDT dominance falls below the 3.7% mark and Bitcoin surpasses $108,000.
Altcoins require careful risk management, especially for traders.
For long-term holders of bear market lows, patience and waiting for additional data are key strategies.
Also read: Bitcoin will rebound in Q1, but beware of 20% corrections, analysts warn
The sequel: Adam, a prominent whaling trader, analyzed weekend trends, predicting a drop in prices “into the zone” by the end of the month.
He highlighted the following key points:
- CME data: Non-reportable traders are heavily shorted, a pattern historically followed by rallies.
- Seasonality: A weak January could lead to a strong February.
- Spot data: Order books are sales heavy and open interest is very concentrated, suggesting patience is required.
For a long position, the ideal plan includes declining open interest, increased spot demand, and aligning with a high volume node at a reasonable price action level.
As the market moves within the range control point, patience is crucial, as the goal is to trade in the extremes when markets are out of balance.
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