Bitcoin may see a period of consolidation lasting between 4 to 5 months, according to an analyst on TradingView. However, a potential big cup and handle formation is showing promising signs for the cryptocurrency. Stay tuned for more updates on Bitcoin’s price movements.
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Capriole Investments founder Charles Edwards believes that the stock and crypto markets, along with Bitcoin on-chain data, indicate that the BTCUSD price could remain stagnant for 4 to 5 months. Edwards compared Bitcoin’s price action to gold, noting similarities in chart patterns. He suggested that Bitcoin might spend up to 9 months forming a cup before a significant price increase.
Despite the potential for a cup and handle pattern, Edwards pointed out that Bitcoin’s Supply Delta and 90-Day Coin Days Destroyed metrics suggest a sideways Market for several months. The Capriole Bitcoin Macro Index also indicates a “risk-off” Market sentiment, where investors focus on capital protection.
ARK Invest analysts support Edwards’ bullish outlook on Bitcoin, citing historical halving events as precursors to long-term momentum. They predict a 3X price increase for Bitcoin within a year after the halving, which could lead to a price range between $180,000 and $200,000.
Investors should conduct their own research before making any investment decisions, as all trading moves involve risks. Stay informed and monitor Market trends to make well-informed decisions.
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1. What does it mean for Bitcoin to “consolidate for 4 or 5 months?”
– It means that the price of Bitcoin may stay relatively stable or trade within a certain range for the next 4 or 5 months.
2. What is a “big cup and handle” pattern?
– A big cup and handle pattern is a technical analysis chart pattern that indicates a potential bullish trend reversal. It looks like a cup followed by a smaller cup-shaped handle.
3. Why does the analyst find the big cup and handle pattern promising for Bitcoin?
– The analyst finds the big cup and handle pattern promising because it suggests a potential uptrend in the price of Bitcoin after a period of consolidation.
4. How long does the analyst expect the consolidation period to last?
– The analyst expects the consolidation period to last for 4 or 5 months before a potential breakout based on the cup and handle pattern.
5. Is there a guarantee that Bitcoin will follow the expected pattern?
– There is no guarantee that Bitcoin will follow the expected pattern. The Market is unpredictable, and prices can be influenced by various factors. It is important to consider all possible outcomes and risks when investing in Bitcoin or any other cryptocurrency.
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