Bitcoin’s Market Uncertainty: Will It Repeat 2024’s Price Consolidation?

The possibility that Bitcoin may repeat its 2024 market behavior, where it consolidated after hitting a record price, is still on the table, according to Markus Thielen, 10x Research's chief crypto analyst.

Thielen acknowledged the likelihood of Bitcoin undergoing a similar price pattern, where after peaking in early 2024 at nearly $74,000, the asset saw a period of stabilization before a shift in market dynamics in November.

Thielen’s analysis also pointed to Bitcoin’s current chart formation, which resembles a “High and Tight Flag” pattern, traditionally seen as a bullish continuation.

However, the chart shows signs of weakness due to multiple flags instead of a single one, signaling hesitation in the market and diminishing the pattern’s usual bullish indication. This uncertainty is further underscored by Bitcoin’s failure to inspire a “buy-the-dip” mentality among investors, with many seemingly uninterested in seizing recent price declines.

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Despite Bitcoin’s drop to below $90,000 in early March, resulting in ETF outflows of approximately $1.66 billion, the outlook remains cautious. Thielen expressed doubts over whether the uptrend will resume soon, suggesting it might be prudent for some traders to close short positions, though there’s insufficient evidence for a strong recovery.

The market’s current state is marked by uncertainty, particularly as Bitcoin’s price hovers around $84,290—significantly lower than its peak in January. Meanwhile, analysts like Iliya Kalchev of Nexo suggest that the low $70,000 range could act as a solid foundation for a more sustainable rebound.

Alexander Zdravkov