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Bitcoin (BTC) “consolidation” may end by July, new research predicts as optimism on BTC price breakout returns.
in his latest market update On June 2, trading firm QCP Capital revealed a bullish bias on both bitcoin and the largest altcoin, Ether (ETH).
QCP Capital: Bitcoin Consolidation “Perfectly Played”
Bitcoin price has ranged between $26,000 and $31,000 since mid-March, but analysts are timing the bullish sideways action.
QCP Capital is one of them, predicting a change of course at the end of the month.
This, it argues, is thanks to the disappearing United States debt ceiling “sideshow,” leaving bitcoin to closely mimic its consolidation and breakout phase from 2020.
“With the debt ceiling bill passing through the House and Senate that extends the limit until January 2025, we can now move forward and have no time to worry about political partisanship again until next year’s US presidential elections.” No need,” it wrote.
“This means we now return to our regular programming of proper macro and crypto narratives.”
For QCP, the price levels may be different, but the underlying behavior is the same in 2023 as it was at the start of the coronavirus pandemic.
Then, the Federal Reserve unleashed a whopping $4 trillion in liquidity, buoying risk assets and ultimately sending bitcoin to new all-time highs.
“We were on the verge of a massive break below 5k in March 2020 when the Fed removed the liquidity tap, resulting in an exponential price increase as we approached the halving cycle next year,” it wrote, adding that quoting from the previous editionjust crypto“Newspaper Series.
“Similarly in March 2023, we were about to break below 20k on BTC as a result of banking crisis risk when the Fed reopened the liquidity tap to get us back above 30k as we head into the next halving cycle are years.”
Should the correlation continue, the next step is clear – a dramatic exit of the trading range, with QCP positioning long options.
“This consolidation has been a full run so far, but we expect it to be nearing the end of this month soon. As a result, we are here with a bias to the long call side via long 3m and 6m strangles. Recommends position for upcoming big move.
The accompanying chart showed the month of June as a hotspot for both BTC and ETH volatility since 2019.
betting on btc price breakout
As Cointelegraph reported, there are other signs coming from within bitcoin that a new paradigm is taking hold soon.
RELATED: Bitcoin Plunges to $26.5K, But Traders Eye for ‘Bullish Surprise’
These include an on-chain metric tracking hodler behavior, which at the end of last month put BTC/USD in a “transition” phase, away from “capitulation” and on the path to “euphoria.”
Meanwhile, many market participants argue that BTC price action is in a critical phase and the trajectory is now about to be decided.
BTC/USD traded close to $27,000 that day, data from Cointelegraph Markets Pro and trading view showed, ended May down 7%.
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This article does not constitute investment advice or recommendations. Every investment and trading move involves risk, and readers should do their own research when making decisions.
