Crypto space is swinging along with the Bitcoin price variations for the past many days. While the market is more exciting for the other altcoins, the BTC price trend is becoming more boring each day. Moreover, the on-chain analysis also points out the buttons are yet to hit the dominant crypto. Looking at the trend, it is evident that the traders are either zooming in too or zooming out too much before they place their bets. And hence leaving the asset within a very narrow trend while sentiments lie around ‘Extreme Fear’.
The Bitcoin price in the recent past has experienced rejection at $42.4K and a retest at $41.3K. And hence if the price maintains within these levels, it may not be a positive sign for the rally. While the apex of the consolidation gets extended week on week, the strength of the rally tends to reduce. Yet the asset seems to have followed the 2021 pattern and hence the BTC bottom may be certainly in.
Bitcoin price formed a similar distribution area above $64,000 during the second rally. The trend it followed was like, consolidate before surging high, smash the distribution phase, decline again to the consolidation zone and chop around for months. The asset yet again followed a similar cycle when the asset formed another ATH close to $70K. Therefore, if the asset follows a similar pattern, then the Bitcoin price may continue with the consolidation for another week and finally leap long towards new ATH.
It is pretty evident that the on-chain metrics currently do not support the above-mentioned plot towards new ATH. But the whales are getting intensified day by day and accumulate more, squeezing the circulating supply and this may lead to an eruption with the Bitcoin(BTC) price in the coming days.