dailyhodl.com
A popular crypto analyst is looking at past cycles to determine whether Bitcoin (BTC) will be able to awaken from its slumber and soar once again.
In a new strategy session, the host of financial education YouTube channel InvestAnswers tells his 390,000 subscribers that while stagnant price action is frustrating for investors, these periods of consolidation are usually followed by upside breakouts.
The analyst references a chart that looks at BTC performance over the past few bull runs and retracements dating back to the summer of 2020.
“I’m always kind of looking for signs that are out there.
If you look at my three-step [chart], we had step one in the summer, we were flat for 11 weeks. We had step two, flat for a while, period of consolidation, and step three.”
The InvestAnswers host says that, if past patterns hold true, then Bitcoin has what it takes to climb after completing the current consolidation and accumulation phase.
“The important thing is what happens after a lengthy period of consolidation?
And that duration of which can be anywhere from four weeks to 11 eleven weeks.
The answer is, it always goes up. Bitcoin doesn’t consolidate and go down. It consolidates, gets accumulated, and then goes up.
I believe after this period of consolidation, which generally is very painful for many, we will go up.”
BTC is currently even on the day and trading for $46,366.
The largest crypto asset by market cap briefly breached the $50,000 resistance level several times last month but quickly gave up those gains.