Bitcoin (BTC) is in a critical phase of consolidation and is closely watched for signs that a major bottom may already be in place. Despite the current uncertainty, technical formations indicate that the corrective cycle may be over. Attention is now focused on the possibility of a strong rally.
At the time of writing, Bitcoin is trading at $95,137, with a 24-hour trading volume of $29.93 billion. The BTC currently holds a market capitalization of $1.90 trillion, after posting a 0.52% decline over the last 24 hours.
This recent dip in price is in the midst of a sideways move for Bitcoin following volatility in the market. Although market trends are currently cautious in terms of price, some analysts feel that the current state of the market is actually preparing for a strong move in the future.
Bitcoin Completes Bottom Phase
Crypto analyst Javon Marks has recently highlighted that Bitcoin has completed its “Bottom Phase (3),” and this lowest point has been formed around $80,600. This bottom phase has often marked the end of a corrective cycle and has led to powerful bullish trends in other cycles as well.
Marks explained how, having identified the previous bottom in this broader trend, Bitcoin proceeded to rally more than 150%, and how such formations could potentially affect the market.
From this observation of past trends, the important upside level of $165,745 has been projected by Marks as a result of the current low region. It has been observed that the general macros are witnessing similar trends that took place before the sudden increase in the price.
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Bitcoin Tests Key Zone, Upside Potential Builds
In support of this view, another analyst, More Crypto Online, pointed out the fact that Bitcoin is currently testing an important area. They further explained that the market would be perfect if the current correction, or wave 4, were to finish in this area.
A clean completion here may provide a new opportunity to begin a five-wave advance from the recent intraday low. A failure to do so may decrease the likelihood of a strong upside movement in the near term.
Overall, although it is still under pressure on the shorter-term charts, it would appear that the overall technical outlook is still indicating that the market may be nearing the end of the correction. Should this be the case, it would appear that a major upward move may be forthcoming.
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