After a rapid surge in the past three days, Bitcoin seems to be taking a breather. With a 25% increase since Monday, roughly $13,000 in gains have been recorded. The question now is whether Bitcoin will resume its upward trajectory or if $64,000 marks a temporary peak.
Unprecedented Momentum Wednesday witnessed an extraordinary bullish surge in Bitcoin’s price, a rarity in its historical cycles. The price catapulted from $57,000 to over $64,000 within the day, before a slight pullback temporarily brought it down to $58,000.
The use of the Fibonacci tool from the consolidation’s top to its bottom showcases Bitcoin’s remarkable adherence to each level. On Monday, Bitcoin broke out and hit the 1.618 level; Tuesday saw it reaching the next 2.618 level, and Wednesday propelled it well beyond the 3.618 and 4.618 levels.
Unconventional Bull Market Dynamics In a conventional bull market phase, Bitcoin would likely enter a period of sideways movement or possibly a slight decline. This could manifest as another consolidation phase or possibly a bullish flag formation.
However, the current market is far from normal. The significant buying pressure from institutional investors and retail traders alike is rapidly reducing available supply. Speculation is rife, with Edward Snowden recently suggesting the involvement of national governments in Bitcoin accumulation, hinting at potential geopolitical advantages.
Speculation and Potential Scenarios Regarding Bitcoin’s price action, it appears that Bitcoin is still attempting to break out. However, it has remained within the bounds of a triangle pattern so far. While a breakdown might seem plausible, the overall trend remains upward and unbroken. The close of the week will provide more insights into Bitcoin’s next move. Trade cautiously in the meantime.
