Bitcoin has just set a new record for the time spent in a mid-cycle consolidation phase between market cycle peaks.
It has been in this phase for eight months, according to technical analyst ‘CryptoCon,’ who added that this cycle is still playing out the same as previous ones.
The analyst has used Fibonacci retracement levels to split market cycles into different phases.
“This sandwich between phases 2 and 3 is served up cold every cycle, creating long sideways periods,”
Don’t worry you’re not crazy… #Bitcoin has been going sideways for a long time.
In fact, we just set a record for the most time spent in phase 2 at now almost 8 months!
But can you see that this time still isn’t different?
There was a cycle that was different, it’s called… pic.twitter.com/f3IX1GepyW
— CryptoCon (@CryptoCon_) October 15, 2023
Sideways Cycle Sandwich
Bitcoin has been trading sideways since March, which was when it moved from the bottom phase to the transition from the low stage, where it currently remains.
In the first cycle, Bitcoin spent six months in this transitionary phase. In cycle two, it was also there for six months in 2015. The third cycle had a long sideways stage in 2019 and early 2020, and the pattern repeated in 2023 in the current market cycle.
Moreover, analysts have also predicted that a pivot point will occur in November, when there may be a final flush-out before a more sustained move upwards.
Most have been in agreement that the next cycle will begin in earnest after the halving event in April or May next year. Until then, it will be more lethargy with a possible dump before the end of this year.
On October 16, analyst ‘CrediBULL Crypto’ updated his short-term predictions, saying he remained cautious at current levels.
He observed the clear sideways/accumulation below and a move to the upside. “However, we know that this move has primarily been driven by short squeezes and on low volume – a liquidity hunt rather than a strong impulsive move up imo,” he said.
For some more perspective, here is another view to demonstrate why I remain cautious here.
We had clear sideways/accumulation below and now we are seeing a move to the upside however we know that this move has primarily been driven by short squeezes and on low volume- a… pic.twitter.com/8uPU3JA3Ly
— CrediBULL Crypto (@CredibleCrypto) October 16, 2023
BTC Price Outlook
Bitcoin is currently changing hands for $27,210, having reclaimed the $27K level during Monday morning’s Asian trading session.
The asset spent most of the weekend trading in a tight range at the $26,850 zone before breaking out on Monday.
Nevertheless, BTC has lost 2.7% over the past seven days, having failed to break resistance at $28K.
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