After breaking away from its all-time high of $73,800, the Bitcoin price is consolidating within a wide range between $53,000 and $72,000.
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However, technical chart patterns and various indicators suggest that the Bitcoin (BTC) consolidation may be nearing completion and the price may be on the verge of a breakout.
BTC/USD daily chart. source: TradingView
Bitcoin Price Consolidation Brings “More Optimistic Outcomes”
According to cryptocurrency analyst Rekt Capital, Bitcoin may be nearing a halt in consolidation after achieving a bullish weekly close on October 27.
Rekt Capital said in an October 27 analysis of X that Bitcoin was close to achieving a weekly close above $67,900.
According to data from Cointelegraph Markets Pro and TradingView, Bitcoin’s bullish action between October 26 and 27 led the pioneering cryptocurrency to a weekly close of $67,938, a “bullish result” according to Rekt Capital.
“Bitcoin is once again getting very close to being positioned for a more bullish outcome.”
BTC/USD weekly chart. source: Recht Capital
Historically, Bitcoin peaked between 518 and 550 days after the halving, Rekt Capital said in a previous post.
The analyst added that despite the long consolidation period following the halving, “Bitcoin is still accelerating by about 35 days in this cycle.”
“So the longer Bitcoin consolidates after the halving, the better it is to re-synchronize the current cycle with the existing halving cycle.”
BTC/USD weekly chart. source: Recht Capital
BTC Price Consolidation Ends — Bollinger Bands
As evidenced by Bitcoin’s volatility indicators, there are still expectations of a breakout in BTC price.
For Bitcoin analyst “The Bull” Severino, a two-week tightening of Bollinger Band conditions means a significant “big move” is imminent.
The width of the Bollinger Bands, a classic volatility and momentum indicator, is currently “one of the three tightest cases in history.”
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According to his analysis, shown in the chart below, the only two other times the two-week Bollinger Bands were this tight were in October 2023 and September 2015.
In October 2023, the BTC/USD pair rose from around $26,500 to an all-time high of $73,835 in March 2024, an increase of 180%.
Another time was September 2015, when the price of BTC rose 8,300%, approaching its all-time high of $20,000 in 2017.
BTC/USD 2-week chart. Source: Source: Tony “The Bull” Severino
If history repeats itself, Bitcoin could soon break out of consolidation at unprecedented levels in the coming months.
Fellow analyst CryptoCon shared similar sentiments, saying that the two-week strengthening of the Bollinger Bands suggests that the Bitcoin bull market is in its next phase.
“This is one of the longest periods spent in the low-volatility zone of the weekly Bollinger Bandwidth,” CryptoCon said in another post about X.
“The longer the integration period, the greater the upside potential.”
source: CryptoCon
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