Bitcoin’s consolidation period is expected to continue for several more months, according to popular trader and analyst Rekt Capital. Despite the lack of upward movement in BTC’s price since the block subsidy halving in April, Rekt Capital believes that bulls should not be concerned. Comparing Bitcoin’s price action in 2021 to that of 2023, he points out that extended periods of nonvolatile moves were also observed in the past. This suggests that Bitcoin tends to form Re-Accumulation Ranges after halvings. A chart accompanying the analysis shows that Bitcoin’s current consolidation phase resembles the multimonth consolidation phase of 2023.
Another analysis supports the idea that the recent price correction in Bitcoin was long overdue, based on previous bull markets. Comparing the current situation to the early stages of the bull market in mid-2016, the chart indicates that corrections of this nature are not uncommon.
The so-called “re-accumulation phase” is not only affecting Bitcoin’s price but also miner activity. Since the halving, miners’ per-block subsidy has been reduced by 50%, leading to a new phase of “capitulation.” This is reflected in the 30-day average hash rate compared to the 60-day equivalent. When the former drops below the latter, it signals the beginning of a capitulation phase. Historically, such periods have presented favorable buying opportunities.
Despite the current market conditions, Willy Woo, creator of the onchain statistics platform Woobull, believes that Bitcoin will not reach all-time highs until more pain and boredom are experienced. This suggests that further consolidation and a period of patience may be required before significant price movements occur.
It is important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research and analysis before making any investment or trading decisions.