bitcoin May Break Out Soon, Historical Patterns Suggest
Bitcoin’s price has been stuck between $82,000 and $84,000. Buyers struggle too push it higher.however,historical trends and on-chain data hint at a possible breakout.
Analyst Rekt Capital noted similarities between Bitcoin’s current price action and its movement in June 2021. After a steep decline, Bitcoin was trapped between the 21-week and 50-week EMAs. It broke out in late July and hit an all-time high in November. Today, Bitcoin is in the same range, suggesting history could repeat.
Rekt Capital also observed decreasing selling pressure. Recent sell-offs have lower volume, indicating sellers are losing momentum. This has made last week buyer-dominated, a pattern that led to strong uptrends in previous cycles.
CryptoQuant reports Bitcoin is in a deleveraging phase. This involves removing excess leverage from the market. In the past, these phases created short- to medium-term buying opportunities and recoveries.
The rise in the 3-6 month UTXO age bands is another positive sign. More investors are holding Bitcoin rather of selling, reducing supply. This accumulation has formed market bottoms and driven rallies in previous cycles.
Despite these signs, US-based Bitcoin ETFs have seen outflows for five consecutive weeks, a record. This suggests short-term uncertainty. However, if selling pressure falls and accumulation increases, a meaningful move could be on the horizon.
