Bitcoin in Consolidation – Is a Breakout in the Works?
Experienced trader and Bitcoin (BTC) expert Tone Vays believes that the king of cryptocurrency is consolidating in preparation for an imminent breakout.
In his latest strategy session, Vays explains to his 123,000 subscribers on YouTube that BTC’s current consolidation phase is a healthy sign for the crypto as it allows the asset to rest before continuing its trend.
Consolidation example: last tear’s bear market
Vays points out that Bitcoin went through a similar consolidation phase at the peak of last year’s bear market. In May and June 2022, Bitcoin cooled off before breaking below the significant psychological area of $20,000.
Vays mentions that consolidation tends to lead to continuations of trends, and in this case, consolidation after a significant drop led to another more losses.
Uptrend consolidation
However, Vays clarifies that BTC remains in an uptrend as it consolidates between $27,500 and $28,500. He is optimistic and thinks that this consolidation is positive. The more time Bitcoin spends between $27,500 and $28,500, the better the breakout will be.
READ MORE: Bitcoin (BTC) Enters New Bullish Chapter, Analyst Says
Monthly chart technical indicators
Vays also looked at the monthly chart, and according to his analysis, Bitcoin’s technical indicators are flashing green.
The Chaikin Money Flow (CMF), which tracks whether market participants are accumulating an asset, has a lot of room to run to the upside. The same applies to the moving average convergence divergence (MACD) indicator, which can give us data about trend reversals. On the other hand, the relative strength index (RSI), a momentum indicator, is starting to approach overbought territory on the monthly timeframe.
Vays concludes that Bitcoin is currently in a very interesting phase. He is bullish about the cryptocurrency’s future and believes it’s on track for a breakout soon.
Andrey Kunev
Reporter at CoinsPress
Andrey Kunev is a knowledgeable cryptocurrency content creator passionate about the crypto market. With extensive experience in market analysis and investment reporting, Andrey is a valuable asset to the CoinsPress team. As a frequent contributor, he offers insightful and comprehensive coverage of market trends, price fluctuations, and new advancements in cryptocurrency. Whether you're a seasoned investor or just getting started, Andrey's clear and concise writing offers a comprehensive look at the current state of the crypto market and its prospects. Stay up-to-date with CoinsPress's expert analysis and commentary on all things cryptocurrency.
