- BTC is down 10.85% on the monthly charts.
- One analyst calls the 2019 consolidation cycle a sign of a coming uptrend.
Bitcoin last month [BTC] has defied all market predictions. In fact, interest rates have continued to fall despite market expectations for a recovery.
At the time of writing, BTC was trading at $54,439, having dropped 6.5% over the past seven days. Similarly, King crypto has fallen 10.85% in the last 30 days. This decline caused Bitcoin’s trading volume to drop 65.23% to $16.1 billion on the daily charts.
Despite this decline, the prevailing market sentiment remains optimistic. Because analysts are constantly expecting a recovery. For example, the popular crypto analyst Bittel Julien ssuggested an upcoming rally, citing the 2019 cycle.
The prevailing market sentiment
In his analysis, Julien highlighted the current ongoing consolidation phase. According to the analyst, the current consolidation phase has lasted 175 days.
Source:
Like the 2019 cycle, Bitcoin is stuck in a similar consolidation phase. Therefore, if BTC follows the same script, it will result in an upward move.
Based on this analysis, BTC shifted from $7,200 to $10,000 in 2020 after the long consolidation. Although it fell afterward, this was attributed to the pandemic. The analysts therefore see an upcoming recovery after the long consolidation.
Therefore, if history were any indicator, we could be on the verge of a substantial breakout or a continuation of the consolidation pattern.
What BTC Charts Suggest
While Julien highlighted one key indicator suggesting a possible turnaround, the question is: do the other metrics agree?
Source: IntoTheBlock
Firstly, large investor inflows have seen continued growth over the past week, from a low of 1.76k to 11.57k at the time of writing. Because investors buy during the market downturn, it indicates that they are breaking out of the dip.
Market behavior indicates accumulation, which indicates that the investor is confident in potential future price gains. This is a bullish signal and the increased accumulation results in buying pressure that pushes prices higher.
Source: CryptoQuant
Moreover, the fund flow ratio has increased in the past week. An increase in fund flow indicates that capital inflows are greater than outflows. Such a market habit indicates increased buying activity, leading to upward price movements.
This generally reflects growing optimism among investors as they expect further gains.
Source: CryptoQuant
Finally, the NVM ratio has increased from 1.4 to 2.05 over the past 7 days. This shows that long-term holders are still holding on despite the price drop.
Read Bitcoin’s [BTC] Price forecast 2024-25
Such market behavior indicates confidence among long-term investors.
Combined with the current favorable market position, BTC is well positioned for a reversal above the $56K resistance level.