New research predicts that the Bitcoin 'consolidation' could end in July as people are optimistic about BTC price breakout returns.
In its latest market update on 2 June, trading firm QCP Capital revealed a bullish bias towards bitcoin
BTC
at $27,092
and the largest competing coin, ethereum
ETH
$1,891
Bitcoin's price has been between $26,000 and $31,000 since mid-March, but analysts are increasingly calling for a sideways move.
QCP Capital is one of them, and is expected to change course as soon as the end of the month.
It attributes this to the disappearance of the US debt ceiling "juggling", allowing bitcoin to closely mimic its consolidation and breakout phase from 2020.
"With the debt ceiling bill passed in the House and Senate, extending the ceiling to January 2025, we can now move forward without having to worry about any political juggling again until next year's US presidential election," it writes.
For the QCP, price levels may be different, but the underlying behaviour in 2023 is the same as it was at the start of the COVID-19 pandemic.
At the time, the Federal Reserve unleashed a massive $4 trillion worth of liquidity, boosting risk assets and ultimately pushing bitcoin to new all-time highs.
"In March 2020, when the Fed released its liquidity tap, we were on the verge of a significant price drop below 5k, leading to an exponential price rise as the halving cycle approached the following year," it writes, citing its previous edition of the report "Just Crypto " newsletter series.
If this relationship continues to work, the next stage is obvious: a dramatic exit from the trading range, with QCP positioning long options.
"So far, this integration has worked perfectly, but we expect we will soon be nearing the end of it sometime this month. As such, we are recommending positioning for the upcoming big move via 3m and 6m long choke lines with a bias towards the long bullish side," it added.
The accompanying charts show that June is a hotspot for BTC and ETH volatility from the start of 2019.
As Cointelegraph reports, other signals from bitcoin suggest a new paradigm is about to take over.
Related: Bitcoin falls to $26,500, but traders see potential for "bullish surprises"
These include an on-chain indicator tracking holder behaviour that placed BTC/USD in a "transition" phase in late May, away from "capitulation" and towards "euphoria".
Meanwhile, several market participants believe that BTC price action is at a critical stage, with decisions on its trajectory now expiring and TradingView data showing BTC/USD trading close to $27,000 on 2 June, down 7% as of May
In its latest market update on 2 June, trading firm QCP Capital revealed a bullish bias towards bitcoin
BTC
at $27,092
and the largest competing coin, ethereum
ETH
$1,891
Bitcoin's price has been between $26,000 and $31,000 since mid-March, but analysts are increasingly calling for a sideways move.
QCP Capital is one of them, and is expected to change course as soon as the end of the month.
It attributes this to the disappearance of the US debt ceiling "juggling", allowing bitcoin to closely mimic its consolidation and breakout phase from 2020.
"With the debt ceiling bill passed in the House and Senate, extending the ceiling to January 2025, we can now move forward without having to worry about any political juggling again until next year's US presidential election," it writes.
For the QCP, price levels may be different, but the underlying behaviour in 2023 is the same as it was at the start of the COVID-19 pandemic.
At the time, the Federal Reserve unleashed a massive $4 trillion worth of liquidity, boosting risk assets and ultimately pushing bitcoin to new all-time highs.
"In March 2020, when the Fed released its liquidity tap, we were on the verge of a significant price drop below 5k, leading to an exponential price rise as the halving cycle approached the following year," it writes, citing its previous edition of the report "Just Crypto " newsletter series.
If this relationship continues to work, the next stage is obvious: a dramatic exit from the trading range, with QCP positioning long options.
"So far, this integration has worked perfectly, but we expect we will soon be nearing the end of it sometime this month. As such, we are recommending positioning for the upcoming big move via 3m and 6m long choke lines with a bias towards the long bullish side," it added.
The accompanying charts show that June is a hotspot for BTC and ETH volatility from the start of 2019.
As Cointelegraph reports, other signals from bitcoin suggest a new paradigm is about to take over.
Related: Bitcoin falls to $26,500, but traders see potential for "bullish surprises"
These include an on-chain indicator tracking holder behaviour that placed BTC/USD in a "transition" phase in late May, away from "capitulation" and towards "euphoria".
Meanwhile, several market participants believe that BTC price action is at a critical stage, with decisions on its trajectory now expiring and TradingView data showing BTC/USD trading close to $27,000 on 2 June, down 7% as of May