Bitcoin May Break Out Soon, Historical Trends Suggest
Bitcoin’s price has been stagnant, hovering between $82,000 and $84,000. However, historical data and on-chain metrics hint at a potential breakout.
Analyst Rekt Capital noted similarities between Bitcoin’s current price action and its movement in June 2021. After a sharp decline, Bitcoin was confined between the 21-week and 50-week EMAs. It eventually broke out in late July, reaching an all-time high in november. With Bitcoin now in a similar range, history might repeat itself.
rekt Capital also observed decreasing selling pressure.Recent sell-offs have seen lower-than-usual volume, indicating sellers are losing momentum. This has created a buyer-dominated period, similar to past cycles that led to strong uptrends.
CryptoQuant noted Bitcoin is in a deleveraging phase, where excess leverage is removed. Historically, this has created buying opportunities and paved the way for recoveries.
The rise in the 3-6 month UTXO age bands is another positive indicator. More investors are holding their Bitcoin rather of selling. This reduces the available supply, a pattern that has historically formed market bottoms and driven new rallies.
Despite these positive signs, US-based Bitcoin ETFs have seen outflows for five consecutive weeks, the longest on record. While this suggests short-term uncertainty, a significant move could be on the horizon if selling pressure decreases and accumulation increases.
For more insights, check out Rekt Capital’s analysis and CryptoQuant’s data.
