Bitcoin (BTC) has several months of consolidation left to see if there is a repeat of early bull market behavior.
Popular trader and analyst Rekt Capital made a fresh comparison between this year and 2023 BTC price action in a recent market commentary.
BTC price forms a “similar range” to 2023.
Bitcoin may be stuck in a firm range since its block subsidy was halved last April, but the lack of upside in BTC prices should not worry its strength, suggests Rekt Capital.
Looking at past and present Bitcoin bull market phases, he showed that as recently as last year, BTC/USD experienced prolonged non-volatile movements.
“Bitcoin tends to form re-accumulation ranges after halvings,” he summarized on
“However, we have already seen Bitcoin form a similar range this cycle (blue circle).”
The attached chart directly compares the current state to the months-long consolidation phase spanning the second and third quarters of 2023.
If such a setup were made now, Bitcoin would remain in a narrow trading corridor for months.
Meanwhile, another analysis claimed that this week’s BTC price correction was “long overdue” based on previous bull markets.
The chart here compares the early innings of the Bitcoin bull market in mid-2016 to 2024.
Bitcoin hashrate changes in price
As Cointelegraph reported, the so-called ‘reaccumulation phase’ is being reflected not only in prices but also in mining activity.
Related: Bitcoin Price Rebound Could Come in 10 Days as Fed Liquidity Goes ‘Higher’
A new “capitulation” has begun under the popular hash ribbon metric after halving miners’ per-block subsidies.
This compares the 30-day average hash rate to the 60-day average hash rate, and if the former falls below the latter, a “surrender” is triggered. Historically, these periods have represented decent buying opportunities, with the last one occurring in the third quarter of last year.
Willy Woo, founder of on-chain statistics platform Woobull, commented on the phenomenon this week: “I know it’s unfortunate, but BTC won’t hit all-time highs until there’s more pain and boredom.” .
“On the bright side, the miners are surrendering, and when it ends, it almost always ends with a mass rally. Find compression in this ribbon. Buy and hold locally.”
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.