Bitcoin Reclaims $90K But This Indicator Signals Possible Consolidation Phase
Bitcoin has experienced it Remarkable declines in recent weeks. So far, BTC has recovered its $90,000 level due to new market activity.
Yesterday, cryptocurrencies surged nearly 10%, briefly hitting a high of $92,756 in the early hours of this morning before experiencing a slight pullback. At the time of writing, Bitcoin is trading at $90,156, down 0.6% in the past 24 hours.
Short-term holder trends and potential market consolidation
Yonsei Dent, a contributor to the cryptocurrency platform, pointed out earlier today Trend Trend Price levels are achieved in Short Term Holders (STH), which shows Potential changes in market conditions.
Analysts point out that this development, as well as the moving average of keys, can indicate a period of market consolidation, unless Strong demand for catalysts Appear.
According to Yonsei Dent, the convergence of short-term holders is aware of the price level that shows that the average entry price for Bitcoin buyers has become increasingly evenly recent. Historically, this situation has shown reduced volatility or lack of clear price directions, leading to a consolidation phase.
Additionally, Dent noted that the 60-day and 200-day moving averages are also tightening, reflecting similar trends observed in May 2024, which resulted in a period of low volatility and lowest prices.
The main factor affecting the prospects of the Bitcoin market is regulatory development, especially the Trump administration’s Cryptocurrency Policy.
Dent stressed that the upcoming cryptocurrency summit tomorrow could introduce key regulatory discussions that could impact Bitcoin’s price action. Crypto analysts wrote:
All eyes are focused on tomorrow’s cryptocurrency summit, with key regulatory discussions expected. If bullish policy outlook appears, it could inject new momentum into the market and break this tightening price structure.
Technical indicators and the future prospects of Bitcoin
From a technical point of view, some analysts are Bitcoin’s long-term trajectory. Crypto Analyst Ali has Point out On the Bitcoin weekly chart, the wick of the candlestick indicates a lot of buying pressure, which shows that buyers are actively defending key support levels.
This observation coincides with previous market trends in which a similar pattern leads to subsequent upward movement. Ali also mentioned the PI Cycle Top metric, which suggests that if Bitcoin recovers its $97,000 level, it may gain momentum, potentially moving towards $150,000.
if #bitcoin $ btc Recouple $97,000, and it could move towards $150,000 in momentum according to the PI Cycle Top metric! pic.twitter.com/yok308t4jy
– ali (@ali_charts) March 6, 2025
Feature images created with DALL-E, TradingView’s chart
