Traders Expect 'Secular Consolidation' Phase As BTC Trades Below $21,000

Cryptocurrency traders have had a brief opportunity to pause and take stock of the situation as the relentless sell-off that has hammered Bitcoin (BTC) and the broader market over the past week has begun to ease despite a continued sell-off in traditional markets.

After climbing to a high of $23,000 during the morning trading session on June 16, the bitcoin price slowly fell to a low of $20,765 on dwindling volume, according to data from Cointelegraph Markets Pro and TradingView.

Here's what several analysts in the market have to say about Bitcoin's outlook as crypto traders try to determine if a bottom has been bottomed out or if there's more downside ahead.

Expect several months of consolidation at the 200-week moving average

Analyst and anonymous Twitter user Rekt Capital discussed the journey Bitcoin has taken over the years and how its past has provided a macro perspective on insight into current market movements, posting the following chart highlighting BTC’s 200-week moving average Reactions near (MA).

Rekt Capital says:

"If #BTC continues to hold the orange 200-week MA as support and the black 200-week MA data as resistance...$BTC could form an accumulation range here, as it did in 2018. This will make multi-month The consolidation becomes possible until December 2022."

Crypto traders and anonymous Twitter user Altcoin Sherpa pointed out that if this happens, then crypto traders need not rush to accumulate BTC, and he posted several charts highlighting the time BTC took in the previous accumulation phase.

The longest accumulation period noted by Altcoin Sherpa is the 287-day span outlined in the graphic above. Other examples provided include 133 days accumulated from November 2018 to April 2019 and 63 days accumulated from May 2020 to July 2020.

Altcoin Sherap says:

“During the accumulation phase, you may have plenty of time to bottom. #Bitcoin takes a while to form a bottom, you should probably go out and touch some grass instead of grabbing a knife.”

Bitcoin Could Reclaim $25,000 If You're Lucky

Cryptocurrency trader Nebraskangooner took a more positive view on Bitcoin's latest developments, offering the chart below, noting that "lower Fibonacci levels have been reached."

Nebraskangooner says:

"Let's see if the daily line can close above resistance, and then we have a chance of hitting $25,000, maybe even around $30,000. For the first time in months, we might finally be ready for a rally since $40,000 The backlash that everyone is calling for."

RSI 1000 Provides Bullish Signal

Another trader who has spotted a potentially bullish signal on a BTC chart is Twitter user TAnalyst, who posted the following chart highlighting recent lows on the Relative Strength Index (RSI) 1000.

TAnalyst said:

“#Bitcoin daily RSI(1000) below 50 only on bottom days before bull run. Today: RSI(1000) = 49.91. Conclusion.”

Based on the history of RSI 1000 dips below 50, the price of Bitcoin may soon start to climb higher.

Crypto educator IncomeSharks may have provided the best summary of the current state of the bitcoin market and the confusion it has caused crypto traders.

The total market capitalization of cryptocurrencies is currently $905 billion, with Bitcoin dominance at 44.3%.