It would take some time longer for Bitcoin and the broader crypto markets to determine a transparent course.
That is based on a recent CryptoQuant report launched on Sunday, February 23. In it, CryptoQuant analyst “Avacado onchain” wrote that the main digital asset, which has been caught in a value vary between $90,000 and $106,000 over the previous few weeks, risked a months-long consolidation just like the one it started in March 2024.
For context, Bitcoin went by way of a roughly seven-month consolidation section from March 2024 by way of October 2024 earlier than resuming its uptrend on pleasure in regards to the U.S. election and President Donald Trump’s victory.
Avacado onchain argued that Bitcoin might be kicking off an analogous market section, citing declining community exercise as a sign of weak market sentiment.
For instance, Bitcoin energetic addresses have dropped from latest peaks of over 1.1 million to close the 900,000-mark. On the similar time, the transaction depend on the community has plummeted over 46% from over 650,000 to almost 350,000.
One other issue highlighted by the analyst was a drop in constructive netflows into exchange-traded funds.
Avacado onchain attributed the weakening market sentiment to a scarcity of concrete outcomes from Trump’s pro-crypto agenda and geopolitical uncertainty within the wake of commerce conflict fears.
“Since earlier bullish narratives have already been priced in, additional upside momentum would require both the decision of uncertainties or new bullish catalysts,” they surmised.
However whereas Avacado_onchain is warning of the potential of lengthy sideways motion, no less than one outstanding dealer has advised {that a} Bitcoin breakout is imminent.
On Friday, February 21, veteran trader Peter Brandt suggested that February 24 by way of February 26 might provide insights on Bitcoin’s subsequent transfer, citing inner symmetry within the value vary.
Within the meantime, Bitcoin is exchanging arms across the $96,000 value level.
DisClamier: This content material is informational and shouldn’t be thought of monetary recommendation. The views expressed on this article could embody the creator’s private opinions and don’t mirror The Crypto Primary opinion. Readers are inspired to do thorough analysis earlier than making any funding choices. The Crypto Primary is just not chargeable for any monetary losses.
