Fun

Bitcoin ‘could’ consolidate for ‘4 or 5 months,’ but big cup and handle looks promising — Analyst

News Feed - 2024-05-17 03:05:25

Nancy Lubale5 hours agoBitcoin ‘could’ consolidate for ‘4 or 5 months,’ but big cup and handle looks promising — AnalystAnalysts say Bitcoin price could range trade for up to 5 months, but longer-term technical and on-chain data continues to point to a 6-figure BTC price target.2635 Total views3 Total sharesListen to article 0:00Markets NewsOwn this piece of crypto historyCollect this article as NFTJoin us on social networksAccording to Capriole Investments founder Charles Edwards, stock and crypto market seasonality, along with Bitcoin on-chain data, suggest that BTC price could consolidate for 4 to 5 months. 


In a new report, Edwards said that Bitcoin continues to oscillate within the cycle range highs in the $58,000-65,000 region, with continuous weekly closes above the $58,000 “supportive of the long-term trend continuation.”


Likening BTC’s price action to gold, which formed a “massive cup and handle” pattern over the last 13 years, with the “cup” lasting four years, Edwards noted how Bitcoin appears to show the same chart pattern.


Edwards noted that given the similarities between Bitcoin and gold, there is a possibility that BTC could spend “up to 9 months in the range high forming a cup before a measured move up.”


Edwards said,“The technical picture remains bullish, provided the price holds above $58K. The longer we spend in the range highs, the more likely this structure will merge into a classic ‘cup and handle’ pattern, which would typically see strong price appreciation following.”BTC/USD weekly chart. Source:TradingView


Despite the promise of the cup and handle pattern, Edwards observed that Bitcoin’s Supply Delta and 90-Day Coin Days Destroyed (CDD) metrics had formed rounded tops. Edwards explained that Capriole Investments uses each to identify cycle tops and that “we are at a comparable mid-cycle pit stop.”“Regardless, this chart is telling us to expect at least a few months (possibly up to 6 months) of sideways chop and volatility before trend resumption. We are at the two-month mark today.”Bitcoin Supply Delta and 90-day CDD. Source: Capriole Investments


Edwards also said he was closely observing the Capriole Bitcoin Macro Index, an indicator combining more than 50 of the most powerful Bitcoin on-chain and macro market metrics that reveals that BTC “continues to be risk off.”Bitcoin Macro Index. Source: Capriole Investments


Risk-off describes a market sentiment where investors reduce their risk exposure and focus on protecting their capital.


However, the report noted that “most of the other metrics still suggest this cycle has quite some room to run.”


Related:Bitcoin analysis sees $74K next as BTC price tries to hold 7.5% gains


Investment management firm ARK Invest corroborated Edward’s views, agreeing that Bitcoin is still bullish. ARK Invest analysts demonstrated that previous halving events set the stage for long-term momentum for BTC.


The report noted that each halving has been a “precursor to upward momentum on a long-term time horizon,” adding,“Assuming a 3x Bitcoin price increase a year after the halving this time around might be too optimistic. That said, this chart highlights the case for Bitcoin’s increasing scarcity over a meaningful time horizon.”BTC performance since halving day. Source: Ark Invest


If the halving cycle plays out as expected, Bitcoin’s price could enter a parabolic uptrend, topping between the $180,000 and $200,00 price range if it makes a 3X increase in BTC price.


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.# Bitcoin# Cryptocurrencies# Bitcoin Price# MarketsAdd reaction

News Feed

Luxury Retailer Tiffany & Co. Announces Jeweled Cryptopunk Pendants Tied to NFTs
Luxury Retailer Tiffany & Co. Announces Jeweled Cryptopunk Pendants Tied to NFTs The luxury jewelry and specialty retailer Tiffany & Co. announced the firm is planning to sell 250
New High For TRON, But Bearish Signals Cast Shadows On The Rally
Este artículo también está disponible en español. The price of TRON (TRX) has been on an impressive run of late and established a double-top technical formation. Technica
Nigeria’s tax watchdog proposes comprehensive crypto bill
Amaka Nwaokocha12 hours agoNigeria’s tax watchdog proposes comprehensive crypto billThe Federal Inland Revenue Service’s initiative to regulate cryptocurrency and update tax laws reflects a broader trend in Nigeria t
Bitcoin Price Could ‘Easily Double’ In A Short Time, Predicts Hedge Fund CEO
Este artículo también está disponible en español. In the latest episode of The Milk Road Show, Charles Edwards, founder of crypto hedge fund Capriole Investments, provide
Cointelegraph Research12 hours agoHow the spot Bitcoin ETF filings affected the crypto industry in June: ReportThe competition among zk-Rollup-based scaling solutions is tightening while the security tokens market contin
Blockasset Pushes the Limits of NFTs and Fan Tokens, Empowers Sports
Blockasset Pushes the Limits of NFTs and Fan Tokens, Empowers Sports sponsored On the 4th of November, one of Times Square’s Countdown screens lit up with artworks depicting
FTX Discovers $5.5B in Liquid Assets — Debtors Explore Ways to Maximize Recovery via Potential Sale of Subsidiaries, Real Estate
FTX Discovers $5.5B in Liquid Assets — Debtors Explore Ways to Maximize Recovery via Potential Sale of Subsidiaries, Real Estate On Jan. 17, 2023, FTX Trading Ltd. and affiliated
Terra Launches New Chain Airdropping LUNA 2.0 Coins — Token Value Slides Over 70% From Price High
Terra Launches New Chain Airdropping LUNA 2.0 Coins — Token Value Slides Over 70% From Price High On Saturday, May 28, 2022, LUNA classic and UST classic holders received an aird
Defi Platform Bzx Recovers Stolen $8.1 Million From Hacker
Defi Platform Bzx Recovers Stolen $8.1 Million From HackerDecentalized finance (defi) protocol Bzx has recovered the $8.1 million it lost to a hacker a few days ago. The company cla
Finder’s Fintech Specialists Predict XRP Jumping to $2.55 by December 2022
Finder"s Fintech Specialists Predict XRP Jumping to $2.55 by December 2022 On May 4, the product comparison platform finder․com published a ripple price prediction report th
Coti launches $10M rewards program to support v2 token rollout
Arijit Sarkar10 hours agoCoti launches $10M rewards program to support v2 token rolloutIn addition to the existing Coti tokenholders, the eligibility for airdrop rewards has been automatically extended to all treasury pa
Biggest Movers: SOL up 20%, ADA Hits Highest Point Since November
Biggest Movers: SOL up 20%, ADA Hits Highest Point Since November Solana rose by as much as 20% Saturday, as crypto markets came alive to start the weekend. The token hit a 12-week