In the ever-volatile world of cryptocurrency, Bitcoin has been under the spotlight with its current 5.5-month descending channel, which has been unfolding over 167 days. This prolonged consolidation phase is leading many to question whether the market is on the brink of a significant breakout. According to 360, a well-known market analyst and host at Forc Media, the current structure is anything but a cycle top. Instead, it hints at a new bull market phase that could drive prices much higher for Bitcoin, Ethereum, and other altcoins.
A Unique Market Structure
The existing descending channel reflects a unique structure in Bitcoin’s price action, something that has never been seen before in its history. This isn’t merely a consolidation or pullback—360 points out that it represents a renewed consolidation base setting the stage for the real bull market cycle. This phase is crucial as it signals a higher price trajectory not only for Bitcoin but across the entire crypto spectrum.
Why This Isn’t a Cycle Top
360 dismisses the notion that the current market phase marks a cycle top, highlighting several reasons:
- Length of Time: The 5.5-month period is significantly longer than typical distribution phases seen in past cycles, which usually involve heavy selling at each peak. The extended time frame suggests that whales and large players have not been offloading their positions aggressively, contradicting what’s typically seen at market tops.
- Liquidity Levels: The current market structure has left billions in liquidity above the resistance levels, a rarity during a distribution phase. Typically, liquidity is removed at each peak as whales sell off assets. However, in this case, liquidity has remained intact, signaling that the market isn’t ready to reverse.
- Volume Profile: 360 explains the importance of the descending volume profile during pullbacks, indicating healthy consolidation rather than a market peak. The volume profile confirms that the market has been accumulating rather than distributing, which supports the bullish outlook.
Global Market Influences
Interestingly, the market has also weathered a global liquidity washout, which impacted not just crypto but all major markets worldwide, including equities and precious metals. Despite this shakeout, Bitcoin’s price behavior remained resilient, reinforcing the notion that the current market phase is setting up for higher prices.
What’s Next for Bitcoin?
According to 360, the key to confirming this bullish scenario lies in watching for a higher low formation and a subsequent breakout above the median of the current channel. If Bitcoin can establish support and ascend above these levels, it could mark the end of the bearish phase and the start of a new bullish cycle.
This isn’t just about Bitcoin, The entire market structure is showing signs of a reaccumulation phase, setting the stage for the next major upward move.
– 360 Notes
Final Thoughts
As we await further developments, 360 encourages investors to keep a close watch on market movements and stay informed. For those seeking more in-depth insights and real-time updates, joining 360 Elite offers 24/7 market updates, trading signals, and portfolio strategies to navigate the crypto landscape.
Disclaimer: As always, cryptocurrency investments are highly speculative and come with risks. Investors should conduct their own research and consider consulting with a financial advisor.
