Parabolic rebound coming soon? Trader's paper profits big dump to 3%, Bitcoin back to $70,000

The world's largest cryptocurrency, Bitcoin (BTC), has been consolidating in the past week, trading between $67,000 and $70,000 after a brief 20% price adjustment, falling to $56,400 in early May.

This period coincides with the reinjection of funds into the US spot Bitcoin ETF market, and the selling pressure seems to have dissipated, both in the ETF market and among a broader range of Bitcoin investors.

Julio Moreno said that the current price of Bitcoin is $70,000, which is different from the price in March. Moreno pointed out that the selling pressure exerted by traders is much smaller now, as the unrealized profit is only about 3%, compared to 69% at the beginning of March. This indicates that most of the "long selling" has been exhausted, as shown in Figure 1.

The data from the market intelligence platform shows that despite the Memorial Day holiday in the United States, which resulted in a temporary suspension of trading in the stock market, the market capitalization of Bitcoin has once again exceeded $70,000.

The market intelligence platform sees this as an encouraging sign, as it proves that BTC can perform positively on days that are not closely related to the major stock market, and most of 2022 has been like this.

Despite the positive momentum, cryptocurrency analyst Rekt Capital pointed out that the latest weekly chart of Bitcoin closed below the high resistance level of the ongoing "re-accumulation" phase, which ranges from $60,000 to $70,000.

This may lead to leading cryptocurrencies further consolidating within this range, consistent with Rekt Capital's argument that the current bull market cycle still retains two phases: the re-accumulation phase after halving and the "parabolic rebound phase".

From a historical perspective, Bitcoin often consolidates near historical highs and then enters the most representative stage of a bull market cycle. Analysts say that Bitcoin has indeed consolidated for quite some time near these highs, especially according to previous cycle standards.

Although there is still room for further sideways consolidation at these high levels, the remaining time in this phase is slowly running out. This leads people to believe that the long-awaited rebound after the halving, coupled with the revival of investor sentiment, is expected to push the market's largest cryptocurrency to a level higher than the $73,700 reached in mid-March.

Therefore, Bitcoin seems to be entering a crucial moment in its current bull market cycle. If historical patterns remain unchanged, the consolidation and re-accumulation that have dominated the market in recent months may soon give way to the next parabolic pump.

BTC has increased by 2% in the past 24 hours, and has risen by 10% in the past month. The current trading price of Bitcoin is $70,200.

(Data Source: Ronaldo Marquez)