Bitcoin Consolidation Continues to signal Possible Price Rise

The process of bitcoin consolidation in the crypto market continues with small levels of cohesion, but with some much-needed persistence. The figure where the digital currency is finding its support is at around 20,000 USD, where numerous bearish attempts did not manage to significantly break or endanger the same number. Now, the flagship digital currency is apparently stable in the same region, while the rest of the crypto space continues to toil in a crypto winter period. But, the levels of optimism have also begun to rise as many begin to examine the possibility of a new precursor to the next bull run. 

The signals pointing to a new phase in the crypto tale are becoming more and more numerous as the western hemisphere enters the full autumn period. That includes an interesting metric that has been used successfully to gauge the state of the crypto space but also to figure out if there is enough support and momentum for a big move up or down. The writing is still on the wall related to that, but many investors and traders are eager to find any form of insight into the future of the crypto market, especially the main BTC token and its price and market capitalization. 

Rainbow Price Chart

The rainbow price chart is not only a thing with a cool name, but a potentially useful mechanism of market analysis that can give some valuable insights into the issue of market bottom and when the same is found. It also allows the reader to gauge the possibilities of assessing how the same asset – in this case, the price of bitcoin – could move in the future as well. Now, looking at the more distant future, if the same historical pattern remains to be true, the chart suggests that the BTC token price could hit a value of 626,000 USD by the end of 2024. 

That is a space where many traders define the maximum bubble territory, or the biggest possible value that an asset could take under ideal circumstances. The same figure of over 600,000 USD would be several times bigger than the previous maximum value that the network token managed to hit back in 2021. So, not many are holding their breath for the BTC token of over half a million USD. But, others are interested in the less drastic projections that could be disseminated from the rainbow price chart. 

Bottom Found

More importantly than the best-case scenario predictions for 2024, the data coming from the rainbow price chart indicates that the bottom of this crypto winter has been found. The present price zone between 19,000 USD and 20,000 USD is something that the chart represents as valid for a potential marking of the bottom. Previously, the price of a BTC token slid even further down, reaching the 18,000 USD zone. 

However, it managed to rebound from there and find a stable footing at around 20,000 USD where it has lingered for several weeks now. But, many are naturally skeptical about the same prospects. After all, that is not the only bottom signal that managed to generate traction in the crypto-related media and places like Twitter and esports forums. Previously, small rallies apparently showcased that the bottom has been found several times since the summer crash. All of them have fizzled out.

Historic Presents

While there have been many unsuccessful rallies so far, there is some reason for optimism. The present state of the crypto market is reminding analysts and traders of the first months of 2020. Back then, the traditional markets have been in a massive clinch on the account of the ramping COVID-19 pandemic. All of that came to a massive drop in the market value that took place in the middle of March 2022. 

The crash took both the traditional market and the cryptocurrency one with it, but the assets from the digital currency spectrum managed to rebound much more effectively. While in many ways the crypto market remains tethered to the traditional markets and their movements, the rebound speed and effectiveness, all while in the midst of the ongoing pandemic, showed that the crypto domain still has many mechanisms up its sleeves. These could, hopefully, come to bear in late 2022 and early 2023, at least according to the most optimistic of timeframes.

Short-Term Potential

The Rainbow chart shows the potential for a bullish flip happening at the end of the year. It would include bitcoin entering a HODL status where many begin to accumulate BTC tokens as fast as possible, expecting an even sharper rise in value. The same trend could lead to the asset reaching a price, according to the chart, of 86,000 USD and over. But, yet again, the problem of charts and their assessment is appearing once more. Over the years, many tried to adjust these charts based on actual performances and thus get a more accurate insight into the possible market movements. Even those who are actively involved in the chart’s assessment and updates tend to underline that it is nothing more than a novel way of looking at the BTC’s future potential. 

But, that is still very far from a magic ball that can see the exact future as it becomes the present moment. Here, the problem lies in the huge potential but also the huge volatility of the crypto markets, which sometimes presents itself in a completely loop-headed way. For example, the second-biggest digital currency in the world, ethereum, recently successfully switched to the proof-of-stake system. Years ago, many predicted that the same event would take decades and that it would eventually change the very nature of digital currencies. But, the switch happened a lot sooner and without any big impression on the markets. That is why both bear and bull signals take place in very frivolous environments. With that in mind, it is not difficult to envision a near future where the price moves neither up nor down in a drastic manner.

Source: Coindesk