The market -be it stock, forex or cryptocurrency - does not move in vertical line; The movement is always impulse(upward or downward) followed by consolidation (compression or side-way movement). Market goes into consolidation to build up orders and the longer the consolidation, the more explosive the move will be. It is during the period of consolidation that patience, faith and greed are tested. It is during this time that people despair and give up. But should it be that way? Well, your guess is as good as mine... until you handle your emotion, the market will always defeat you.
Looking at historic data for Bitcoin:
-Consolidation from 10th of November 2022 to 4th of January, 2023 lead to impulse that move price from $16,326 to $23,375
-Consolidation from 22nd of January to 10th of March 2023 lead to impulse that move price from $19,568 to $28,478
-Consolidation from 18th of March to 13th of June, 2023 lead to impulse that move price from $24,750 to $30,700. As shown below, the consolidation have always lead to growth in the prize and this sequence is expected to continue.
At present, Bitcoin have been in consolidation from the 23rd of June,2023 till date, what do we expect? Two case scenarios are possible.
Case 1A sharp drop in price to $26,000 region to test the lower major zone before the impulse move to the upside in line with the historic data
Case 2A rally from the major zone that have already been tested, the $29,000 region, and this will see the impulse move to the upside in line with the historic data.
My SuggestionFrom the forgoing, I am of the opinion that the consolidation will linger a little pending when we will see a major fundamental that will propel the impulse move. I do not see
case 1 above happening as I am tilting in the direction of
case 2. Furthermore, from the above historic data, Bitcoin will rise even though the "when" is not known, it will happen. If you are already in, do not panic especially if you have some form of faith in Bitcoin.
Note: This not a financial advice but an opinion you might integrate into your planning if you find the information useful. Always do your due diligence.
