How long will Bitcoin’s price consolidation last?
2024.10.28 07:37
Since turning away from its all-time high above $73,800, Bitcoin (BTC) price has been consolidating within a wide range, stretching from $53,000 and $72,000.
Related: ‘Most bullish’ weekly close — 5 Things to know in Bitcoin this week
However, according to technical chart patterns and various indicators, Bitcoin’s consolidation could be nearing an end as the price may be on the verge of a breakout.
BTC/USD daily chart. Source: TradingView
Bitcoin price consolidation sets up “more bullish outcome”
According to popular crypto analyst Rekt Capital, Bitcoin could potentially be on the verge of breaking out of consolidation after achieving a bullish weekly close on Oct. 27.
In an Oct. 27 analysis on X, Rekt Capital said Bitcoin was close to achieving a weekly close above $67,900.
Data from Cointelegraph Markets Pro and TradingView reveals that Bitcoin’s bullish price action between Oct. 26 and Oct. 27 saw the pioneer cryptocurrency produce a weekly close of $67,938, which is a “bullish outcome,” according to Rekt Capital.
“Bitcoin is once again getting very close to positioning itself for the more bullish outcome.”
BTC/USD weekly chart. Source: Rekt Capital
Historically, Bitcoin has peaked between 518 and 550 days after halving, Rekt Capital explained in an earlier post.
Despite the long post-halving consolidation period, “Bitcoin is still accelerating in this cycle by approximately 35 days or so,” the analyst added.
“So the longer Bitcoin consolidates after the Halving, the better it will be for resynchronising this current cycle with the traditional Halving cycle.”
BTC/USD weekly chart. Source: Rekt Capital
BTC price consolidation ending — Bollinger Bands
Anticipation of a breakout in BTC price lingers in the background, as suggested by Bitcoin’s volatility indicator.
For Bitcoin analyst “The Bull” Severino, tightening Bollinger Bands conditions in the two-week time frame indicates that a significant “huge move” is imminent.
The width of the Bollinger Bands, a classic volatility and momentum indicator, is currently “among the three tightest instances in history.”
Related: BTC price nurses 5% dip amid warning Bitcoin can still ‘flush’ to $60K
According to his analysts shown in the chart below, the only other two times the two-week Bollinger Bands were this tight were in October 2023 and Sept. 2015. I
n October 2023, the BTC/USD pair rose from around $26,500, rallying approximately 180% to an all-time high of $73,835 in March 2024.
The other time was in September 2015, preceding an 8,300% rally in BTC price to 2017’s all-time high near $20,000.
BTC/USD two-week chart. Source: Source: Tony “The Bull” Severino
If history repeats itself, Bitcoin could soon break out of consolidation to unprecedented levels over the next few months.
Fellow analyst CryptoCon shared a similar sentiment, explaining that the tightening two-week Bollinger Bands suggested that the Bitcoin bull market is next.
“This is one of the longest times spent in the Low Volatility Zone of the Weekly Bollinger Band Width,” CryptoCon said in another post on X.
“The longer the consolidation, the more the upside.”
Source: CryptoCon
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
