Bitcoin prices may continue consolidating for some time as network data shows decreasing momentum alongside reduced selling pressure.
After briefly surpassing $70,000, Bitcoin fell back below this level in early trading on Wednesday. Resistance proved strong, and the price has returned to the middle of its five-week range.
Activity among long-term holders has dropped significantly, reaching levels usually observed during bear markets, according to CryptoQuant analyst ‘Darkfost’ on X. They noted that this decline signals a reduction in selling pressure, which could support ongoing price consolidation.
Expectations of Extended Sideways Movement
Analyst ‘Daan Crypto Trades’ pointed out that Bitcoin’s price has closed below the 200-week exponential moving average for another week. This long-term trend indicator was briefly tested earlier in the week, but the price fell back below $70,000.
He added that the bull market support band is moving downward quickly and will intersect with the current price soon if Bitcoin continues hovering around this level. This could result in months of sideways trading.
“My base case is that Bitcoin will remain within the $60,000 to $80,000 range for several months before a decisive move occurs,” he said.
MN Fund founder Michaël van de Poppe commented on Tuesday that the market is experiencing a back-and-forth rhythm. He explained that although no breakout has occurred, prolonged consolidation may strengthen the eventual move.
Meanwhile, analyst ‘RedHotTrade’ noted that Bitcoin is compressing between $60,000 and $70,000, with multiple technical patterns forming simultaneously. When several patterns indicate the same breakout level, the resulting move is often substantial.
Analyst Matt Hughes observed that Bitcoin has been consistently rejected just above $71,000, suggesting that a real breakout cannot be confirmed until weekly candle closes surpass this threshold.
Current Crypto Market Overview
Crypto markets are mostly flat, with total capitalization at $2.45 trillion, roughly the same as early February.
Bitcoin faced resistance at $71,600 on Tuesday and fell to $69,600 at the time of reporting. Ether remains tightly range-bound just above $2,000, gradually losing minor gains recorded earlier.#crypto#cryptonews https://t.me/coinsignalpublic https://coinsignals.net
