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- Bitcoin price has been trapped in a bearish consolidation in the past four months following the end of the first sentiment extreme at around $73k.
- Top analysts believe Bitcoin price is preparing for the euphoric phase of the bull run despite the Mt.Gox repayment and the ongoing selloffs by the German government.
Bitcoin’s (BTC) price has established a micro-consolidation range between $58,300 and $55,857 in the past five days. After consistently closing below the 200-day Moving Average (MA) in the past few days, the flagship coin could be on the verge of a major bullish uproar.
Bitcoin’s daily Relative Strength Index (RSI) has hovered around the oversold levels for the past month suggesting an imminent rebound ahead. Furthermore, Bitcoin’s fear and greed index dropped from around 44% last week to about 27% on Tuesday, July 9, 2024.
According to a popular crypto analyst on X platform alias TechDev, Bitcoin price has been forming a similar fractal pattern to the 2017 bull cycle, thus signaling a major bullish breakout ahead.
The crypto analyst uses the net unrealized profit and loss (NUPL) metric and the Bitcoin market cycle to support the bullish theory. Currently, the crypto analyst believes that Bitcoin price on the weekly time frame is in a bear trap, which will be followed by a FOMO and euphoric zone.
Image Source: TechDev
Bitcoin Price Suffers Low Demand From Whale Traders
The past few weeks have turned out bearish for the entire crypto industry as the demand from institutional investors gradually wanes. As we previously reported, the German government has already sold off more than half of the BTC seized from the movie piracy site Movie2k.to in 2013.
According to on-chain data provided by Arkham Intelligence, the Bitcoin address associated with the German government currently has about 22.84k Bitcoins, worth around $1.3 billion.
The continued Bitcoin selloff by the German government has coincided with the notable decline in the miners’ holdings. More than two months since the fourth Bitcoin halving and the difficulty has gradually dropped as miners switch off the rigs to catch up with the competition.
Meanwhile, the US spot Bitcoin ETFs registered the first major cash inflow on Monday, of about $300 million led by BlackRock’s IBIT, after a month of notable dry spell. As we reported earlier, the Bitcoin price could be on the verge of a major rebound towards $70k as mid-term fears grip the crowd.
BTC Long-Term Picture
Bitcoin price is already in a macro bull cycle, with most analysts anticipating a major rebound in the fourth quarter. According to Spot On Chain’s Bitcoin price prediction based on a recent AI model, the flagship coin will reach at least $100k by the end of this year.
The anticipated interest rate cut in the United States later this year amid the upcoming general elections is expected to trigger the macro crypto bull rally. Moreover, the mainstream adoption of digital assets and web3 projects has pushed both political parties to give a listening year to the crypto industry to obtain voters’ sympathy.
