Parabolic Rally In The Making? Bitcoin Regains $70,000 As Traders’ Paper Profits Collapse To 3%

The
world’s
largest
cryptocurrency,
Bitcoin
(BTC),
has
been
consolidating
over
the
past
week,
trading
between
$67,000
and
$70,000
after
experiencing
a
brief
20%
price
correction
that
sent
it
as
low
as
$56,400
in
early
May. 

This


consolidation
period

comes
as
inflows
into
the
US
spot
Bitcoin
ETF
market
have
reignited,
and
selling
pressure
appears
to
have
cooled
off,
both
in
the
ETF
market
and
among
Bitcoin
investors
more
broadly.

Bitcoin
Selling
Pressure
Fades

According

to
Julio
Moreno,
head
of
research
at
on-chain
market
analytics
firm
CryptoQuant,
the
current
Bitcoin
price
level
of
$70,000
differs
from
when
it
last
reached
that
mark
in
March. 

Moreno
notes
that
traders
are
now
exerting
much
lower
selling
pressure,
as
unrealized
profits
are
only
around
3%,
compared
to
69%
in
early
March.
This
suggests
that
much
of
the
“heavy
selling”
has
been
exhausted,
as
seen
in
the
chart
below.

Related
Reading

Santiment


data

also
shows
that
Bitcoin
has
once
again
eclipsed
a
$70,000
market
capitalization,
even
as
the
US
stock
market
took
a
hiatus
for
the
Memorial
Day
holiday. 

Market
intelligence
platform
Santiment
sees
this
as
an
encouraging
sign,
as
it
demonstrates
BTC’s
ability
to
perform
positively
on
days
when
it
is
not
closely
correlated
with
the
primary


stock
market,
which
has
been
the
case
for
much
of
2022.

Final
Pre-Breakout
Consolidation
Phase

Despite
this
positive
momentum,
crypto
analyst
Rekt
Capital
has


noted

that
Bitcoin’s
latest
weekly
candle
closed
below
the
range
high
resistance
of
its
ongoing
“re-accumulation”
phase,
which
spans
roughly
$60,000
to
$70,000.

This
likely
sentences
the
leading
cryptocurrency
to
further
consolidation
within
this
range,
aligned
with
Rekt
Capital’s


thesis

that
two
phases
remain
in
the
current
bull
cycle:
the
post-halving
re-accumulation
phase
and
the
“parabolic
rally
phase.”

Historically,
Bitcoin
has
tended
to
consolidate
around
all-time
highs
before
embarking
on
the
most
illustrative
stretch
of
its
bull
cycles.
According
to
the
analyst,
Bitcoin
has
indeed
been

consolidating
at
these
highs
for
quite
some
time
now,
especially
by
the
standards
of
previous
cycles. 

While
there
is
still
room
for
further
sideways
trading
at
these
elevated
price
levels,
the
time
remaining
in
this
phase
is
slowly
running
out.
This
leads
to
the
belief
that
the
long-awaited


post-Halving

rally,
coupled
with
renewed
investor
sentiment,
is
poised
to
take
the
largest
cryptocurrency
on
the
market
to
even
higher
levels
than
the
current
$73,700
reached
in
mid-March.

Related
Reading

As
such,
Bitcoin
appears
to
be
entering
a
critical
juncture
in
its
current
bull
cycle.
The
consolidation
and


re-accumulation

that
has
dominated
the
market
in
recent
months
could
soon
give
way
to
the
next
parabolic
surge,
should
historical
patterns
hold. 

As
of
now,
BTC
has
gained
2%
in
the
past
24
hours,
adding
to
its
10%
positive
movement
in
the
past
month
alone.
Bitcoin
is
currently
trading
at
$70,200. 

Featured
image
from
Shutterstock,
chart
from
TradingView.com