Bitcoin (BTC) “consolidation” could end by July, according to new research, as optimism about a breakout in BTC price returns.
In his last market update On June 2, trading firm QCP Capital revealed a bullish bias on Bitcoin and the largest altcoin Ether (ETH).
QCP Capital: Bitcoin consolidation “went perfectly”
Bitcoin price has been hovering between $26,000 and $31,000 since mid-March, but analysts are asking for more and more time for sideways action.
QCP Capital is one of them, predicting a change of course at the end of the month.
This, he says, is due to the disappearance of the US debt ceiling “spectacle”, leaving Bitcoin to closely mimic its consolidation and breakout phase from 2020 onwards.
“With the House and Senate passing the debt ceiling bill that extends the debt ceiling until January 2025, we can now all move on and not have to worry about a show. parallel policy until the US presidential elections next year,” he wrote.
“This means we are now returning to our regular programming of proper macro and crypto narratives.”
For QCP, the price levels may be different, but the underlying behavior is the same in 2023 as at the start of the coronavirus pandemic.
Then the Federal Reserve released a giant $4 trillion in liquidity, inflating risky assets and ultimately sending Bitcoin to new all-time highs.
“In March 2020, we were on the brink of a massive price drop below 5,000 when the Fed pulled the liquidity tap, causing prices to rise exponentially as we approached the year-end halving cycle. next,” he wrote, quoting an earlier edition of his “Just Crypto» bulletin series.
“Similarly in March 2023, we were about to break below 20,000 on BTC due to the banking crisis, when the Fed again triggered the liquidity tap to bring us back above 30,000, so that we are heading into the next halving cycle year.”
If the relationship continues to play out, the next phase is obvious – a dramatic breakout from the trading range, with QCP positioning options plays long.
“This consolidation has been going perfectly so far, but we expect to be nearing the end of this month soon. 3m and 6m here, with a bias towards the long call,” he added.
An attached chart showed that June was a hot spot for BTC and ETH volatility from 2019.
Betting on a BTC price breakout
As Cointelegraph reported, other signals coming from Bitcoin indicate that a new paradigm is taking over shortly.
Related: Bitcoin Drops To $26.5,000, But Trader Eyes “Bullish Surprise”
These include on-chain metric tracking hodler behavior, which late last month put BTC/USD in a “transition” phase away from “capitulation” and on the path to “euphoria” .
Several market participants, meanwhile, claim that BTC price action is at a critical stage with a decision on the trajectory now due.
BTC/USD traded near $27,000 that day, according to data from Cointelegraph Markets Pro and TradingView showed, after ending May down 7%.
Magazine: AI Eye: 25,000 Traders Bet on ChatGPT Stock Picks, AI Eyes Dice Rolls, and More
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.
