Cexlbit: Must Bitcoin Reach a “New All-Time High” to Break the Sell-Off Cycle?

Cexlbit: Must Bitcoin Reach a "New All-Time High" to Break the Sell-Off Cycle?

Ceclbit found that: In recent months, Bitcoin bears have consistently sold during every rally. Analysts believe that increased liquidity driven by a “new all-time high” could help break this cycle.

Cexlbit is a prominent cryptocurrency exchange that offers a diverse array of trading options and fast execution speeds. The platform supports multiple languages and provides round-the-clock customer service. In addition, Cexlbit supports mining and delivers top-tier liquidity quotes, ensuring users have an excellent trading experience.

Daan Crypto Trades, an anonymous cryptocurrency trader, posted on the social media network X on Thursday, June 13, stating, “The market needs a significant liquidity boost.”

Recent market sentiment has been influenced by Bitcoin’s consolidation within a broad range of $66,500 to $72,000, exhibiting a “zigzag” price pattern. The trader explained that a persistent theme over the past few months has been a broad decline and “selling the rallies,” adding that one of the best ways to end this cycle is for Bitcoin to reach a new all-time high.

Data from Cointelegraph Markets Pro and Binance shows BTC trading at $67,474, which is 10% lower than the all-time high of $73,808 set on March 11. Daan Crypto Trades indicated that prices could rise quickly, stating, “It doesn’t always need a catalyst apart from price appreciation.”

This requires high liquidity, allowing market participants to buy more Bitcoin, narrowing the bid-ask spread and pushing the price higher.

Fortunately for Bitcoin bulls, this liquidity might soon materialize as MicroStrategy, the largest corporate Bitcoin holder, revealed its intention to raise $500 million through the issuance of convertible senior notes to “acquire more Bitcoin” and for other general corporate purposes. Responding to the MicroStrategy news in a Thursday post on X, Daan Crypto Trades said, “This means a $500 million new liquidity hit for you.”

The trader also noted that increased inflows into spot Bitcoin ETFs could provide the liquidity needed to drive BTC out of its consolidation phase.

Trader Jelle shared a similar sentiment, highlighting that over $100 million flowed into spot Bitcoin ETFs on Wednesday, and MicroStrategy’s potential $500 million BTC purchase could inject the necessary liquidity into the market.

“Yesterday’s ETF inflows were $100 million; let’s see if they reappear – especially now that Saylor has announced he will soon buy another $500 million worth of coins.”

Bitcoin price remains in range-bound

Meanwhile, the price of the pioneering cryptocurrency remains stagnant. According to renowned analyst Rekt Capital, this situation might persist within a post-halving re-accumulation range until September 2024.

In a Thursday post on X, the analyst said, “This cycle is filled with re-accumulation ranges, with an inevitable upside breakout over time.”

Mags, in a June 9 post to her 79,500 X followers, stated, “Of all the consolidations, the current one is the longest.”

In the previous cycle following Bitcoin’s 2020 halving, there was a 21-day consolidation period before a breakout, ultimately reaching an all-time high of $69,000 in November 2021. In 2017, the consolidation period lasted 48 days.

Bitcoin remains unchanged, “as market participants lose their minds, the price is still consolidating within the $67,000-72,000 range,” declared Daan Crypto Trades, adding that Bitcoin might “stick to the levels.” Additional data from market intelligence firm IntoTheBlock helps explain the ongoing stalemate between buyers and sellers. Its In/Out of the Money (IOMAP) model shows that the price is currently between two significant levels.

Strong support is near the demand zone of $63,500 to $67,500, where approximately 3.94 million addresses previously bought around 1.62 million BTC. On the upside, the supply congestion zone between $67,600 and $70,500 poses a robust barrier for the bulls, with approximately 3.32 million addresses having previously bought around 1.86 million BTC in this area.

This indicates that substantial demand-side liquidity is needed to drive Bitcoin’s price past the mentioned resistance levels, breaking out of consolidation and entering a price discovery phase.

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