Crypto Faces Prolonged Consolidation Amidst Depleting Momentum, Analyst Warns

An unidentified individual or entity who received 2,000 Bitcoin in mining rewards in 2010 has consolidated them into a single wallet. source: https://cointelegraph.com/news/massive-bitcoin-consolidation-sell-liquidity-concerns

According to CryptoPotato, Bitcoin's price has entered a sideways consolidation phase following a notable surge toward the $52K resistance level, leaving market participants uncertain about its next direction. A short-term correction seems likely. Analysis of the daily chart reveals a prolonged bull market for Bitcoin, characterized by its upward movement within a clearly defined ascending channel. This pattern indicates strong buyer dominance, potentially aiming for a new all-time high (ATH). Despite this bullish sentiment, Bitcoin has encountered a critical resistance zone near the $52K mark after its recent upward surge. Consequently, a period of consolidation correction is anticipated, allowing the market to find support levels around the channel's mid-boundary and the 100-day moving average of $43K. However, a sudden breakthrough above the multi-month ascending channel could trigger a short-squeeze event, leading to another surge in the short term. A closer look at the 4-hour chart reveals a period of subdued price action near the significant $52K resistance level, with low volatility following a strong bullish rally. This consolidation phase with slight volatility suggests a balance between buyers and sellers until one group gains dominance. If sellers take control, a short-term corrective retracement toward the critical support zone around $48K may occur, aligning roughly with the 50% Fibonacci retracement level. Conversely, if buyers prevail, an impulsive surge could be expected, aiming to breach the critical resistance region at $58K. Monitoring these crucial levels and market dynamics will be essential to navigate potential fluctuations, given the anticipated heightened volatility in the short term. Recent data reveals a notable increase in the number of UTXOs (Unspent Transaction Output) ranging from 1K to 10K Bitcoins, a range typically associated with whales or institutions rather than individual investors. This surge, particularly following the approval of Bitcoin spot ETFs, underscores heightened activity among institutional players. While not yet reaching the levels seen during the latter stages of the 2021 bull market, the influx of whales and institutions into the market is noteworthy. Historically, such influxes have often preceded the entry of new individual investors, marking a potential transition point in the market cycle.

Crypto Analyst Dan Gambardello has spotted a “mega move” in Bitcoin’s price. In a recently uploaded video, Gambardello analyzed the recent Bitcoin rally, explaining its importance to the current market situation. He also identified a critical development in Cardano’s price, projecting how the altcoin’s price would unfold in the short term. According to Gambardello, the […] source: https://coinedition.com/bitcoins-mega-move-and-cardanos-consolidation-mimic-crypto-bull-run-behaviors/

A closely followed trader believes that the crypto market is inching toward the end of its rally following a stellar performance last year. Pseudonymous analyst The Flow Horse tells his 196,800 followers on the social media platform X that he believes the year-long bullish run of the crypto markets is about to face exhaustion. According […] source: https://dailyhodl.com/2024/01/09/long-consolidation-period-looming-for-crypto-as-markets-have-already-used-up-all-the-juice-says-analyst/

Major cryptocurrencies dropped in value on Tuesday evening as the Bitcoin market experienced no significant surprise during the Christmas holiday, as the so-called “Santa rally” failed to materialize, leaving Bitcoin source: https://www.benzinga.com/23/12/36393211/bitcoin-ethereum-dogecoin-tumble-as-santa-rally-fails-to-materialize-analyst-says-consolidation-is-n?utm_campaign=partner_feed&utm_source=cryptopanic.com&utm_medium=partner_feed&utm_content=site

According to Will Clemente, co-founder of Reflexivity Research, there will be an imminent correction in the price of Bitcoin. Clemente explained that the correction would be sharp and allow the market to shake off “greedy”, leveraged hands. Using information from Glassnode, a blockchain data and intelligence platform, Clemente showed how price corrections have been a […] source: https://coinedition.com/bitcoins-new-rise-faces-its-first-test-correction-or-consolidation/

Odaily Planet Daily News Encryption data analysis platform CryptoQuant said in a weekly report that Bitcoin’s recent price trend is very similar to past cycles, which indicates that Bitcoin may still be in a consolidation phase before the 2024 halving event, but also hints that " Prices may rise significantly after the halving.” CryptoQuant analysts believe that Bitcoin’s current valuation is undervalued and there is no widespread retail speculation, providing data support for its potential for future price growth. (CoinDesk)

Payment company Affirm (AFRM) will close its encryption business Affirm Crypto on March 2 and plans to lay off 19% of its workforce. It is unclear what percentage of these layoffs are related to the encryption business. Previously, Affirm Crypto allowed customers to buy, sell or hold cryptocurrencies.

According to PeckShield warning, 13 million USD worth of cryptocurrencies have been transferred to the Alameda consolidation address, including 6 million USDT and 1545 ETH (approximately USD 2.5 million) transferred from Bitfinex and 460 USD transferred from address 0x7889 10,000 USDC.