The cryptocurrency marketplace, forever the wild rodeo of the financial landscape, finds itself in the spotlight once again as Bitcoin (BTC) and Ethereum continue to captivate investors’ interest. Bitcoin, the original and most illustrious of all cryptocurrencies, has recently soared, marking a 24-hour apex of $71,650. This represents a 6.4% uphill climb in a single day and nearly 20% elevation over the past week.
The growing enthusiasm around Bitcoin’s performance prompted a well-respected cryptocurrency analyst to shed light on the digital asset’s latest trends, pointing out that Bitcoin might be positioned for a significant leap forward.
Rekt Capital, an influential crypto analyst known for his acute insights, recently elaborated on an intriguing prospect for Bitcoin. It was noted that should the weekly candle close beyond roughly $71,500, it could act as a gatekeeper for the breakout from the presently observed “Re-Accumulation Range.”
Yet, the analyst divulged that based on historical patterns, Bitcoin might need to linger within this range for a few more weeks to align more closely with the previous Halving Cycles that have guided its price journey in the past.
According to Rekt Capital, this extended phase of consolidation could prove to be a boon for Bitcoin’s long-term evolutionary arc. It’s postulated that this could enable the cryptocurrency to “resynchronize” with past cycles, potentially paving the way for a steady and enduring bull run, a stark contrast to a shorter, fast-paced cycle that peaks prematurely.
Crucially, it was noted that the existing cycle’s acceleration has been maintained at approximately 190 days, a marked improvement from the 260-day surge set in mid-March when Bitcoin fashioned new all-time highs.
The matter of preference between a shorter sprint or a typically lengthier bull run is a topic of market conjecture. At present, the conversation isabout whether Bitcoin can maintain its habit of defying historical trends and rise above the $71,500 range.
Parallels are being drawn between the current market environment and the action observed during the 2017 bull run, where Bitcoin saw a sharp ascent, posting a 1,200% increase on its journey to the then high of $20,000. Bitcoin is speculated to be preparing for another similar exponential growth spurt that could blast through the $100,000 ceiling, thanks, in part, to its extended consolidation phase in the current market cycle compared to 2017.
Supporting this view, Rekt Capital intimated that even a price tag of $72,000 might appear modest in the upcoming months should Bitcoin continue along its predetermined trajectory.
One can’t ignore the role optimism and anticipation have played in fuelling this rally, especially the potential approval of Ethereum spot ETFs and the rising inflows into spot Bitcoin ETFs. Data from Farside indicates that the latter witnessed its most sizeable inflow week in two months, with the US fund category collectively raking in a handsome $948 million in positive net flows from May 13 to May 17.
Interestingly, approximately 89% of these inflows were recorded in the last three trading days of the week, following a less than expected Consumer Price Index (CPI) report.
