Crypto: Bitcoin Analysts Predict ‘prolonged Consolidation’ For BTC Price

Bitcoin’s onchain structure “remains fragile,” said Glassnode, warning of a prolonged consolidation period ahead for BTC price.

Bitcoin (BTC) price could be in for another prolonged period of consolidation if key support levels are not reclaimed, a new analysis reveals.

Bitcoin is stuck between key cost-basis levels, predicting 2022-type consolidation unless key support levels are reclaimed.

Spot Bitcoin ETFs recorded a net outflow of $708.7 million, their fifth-largest since launch, signaling institutional caution.

In the Jan. 21 edition of its regular newsletter, The Week Onchain, onchain data provider Glassnode confirmed key areas of resistance “constraining upside follow-through and keeping rallies vulnerable to distribution.”

The BTC/USD pair has been oscillating within a wide range defined by the True Market Mean at $81,100 and the short-term holder (STH) cost-basis at $98,400.

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According to Glassnode, the recent rejection near the STH cost basis at $98,400 “mirrors the market structure observed in Q1 2022, where repeated failures to reclaim recent buyers’ cost basis prolonged consolidation.”

The chart above shows that Bitcoin price spent the period between February 2022 and July 2022 trapped between the STH cost basis and the True Market mean before entering an extended bear market, bottoming around $15,000 in November 2022.

Glassnode’s Entity-Adjusted UTXO Realized Price Distribution (URPD), a metric that shows at which prices the current set of Bitcoin UTXOs were created, also revealed a wide and dense supply zone above $100,000 that has been gradually maturing into the long-term holder cohort.

Source: CoinTelegraph