A widely followed crypto analyst says that Bitcoin (BTC) is likely in the middle of a long consolidation process that will eventually lead to a major move to the upside.
Pseudonymous Trader Altcoin Sherpa tells are 196,100 Twitter followers that it could be about eight months before the next Bitcoin bull run happens.
“I wanted to look at a higher time frame to see where things are on the macro front; I think most of 2023 will be pretty choppy. We have of course made good progress, but there will be weeks/months of consolidation.”
The trader say that Bitcoin’s price action on the weekly time chart looks bullish and sits above its major exponential moving averages (EMAs), just as it did in 2019.
“We can see in the week all the EMAs are clumping together and tightening. This usually means that the price is compressing and a major move is imminent; it is also important to see the price above all EMAs and bullish for the first time in a year. Reminds me a bit of 2019.”
sherpa say that Bitcoin was able to trade within a wide range between an upper limit of $40,000 and a lower limit of $15,000 during a months-long consolidation phase.
“I wouldn’t be at all surprised to see a varying structure of $35,000-$40,000 or so as the highs and $15,000-$20,000 as the lows. I could see a lot of heeling and consolidation towards the end of 2023 and I hope we start to see some bullish moves in early 2024.
The trader predicts that there will be smaller Bitcoin and altcoin rallies sometime in early 2024 leading to a continued bull market for the major crypto assets by market capitalization.
“There will be a lot of strong runs between now and then, but I think it will be at least another six to eight months before we see any kind of full bull market (and possibly even longer). We have mini altszns (altcoin seasons) similar to how it was in 2019.
But I don’t see it as a huge casino where retail is still full for a while. Best to save money and trade/invest in the environments you like and probably just start touching grass and enjoy the summer otherwise. Don’t lose all your money before the bull market comes.”
Bitcoin is trading at $30,270 at the time of writing, down 0.1% in the past 24 hours.
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