Amidst the vast expanse of the digital cosmos, Bitcoin (BTC) has found itself ensnared in a narrow band of indecision, oscillating between the lofty peaks of $84,000 and the slightly less lofty $82,000. The market, ever cautious, seems to be holding its breath, but historical patterns and on-chain data whisper of a potential breakout on the horizon. 🌌
According to the sage of the X-verse, Rekt Capital, Bitcoin’s current plight bears a striking resemblance to its journey in June 2021. Back then, after a precipitous fall, BTC was confined between the 21-week and 50-week EMAs, much like a bird trapped in a gilded cage. But, as the saying goes, what doesn’t kill you makes you stronger. By late July, Bitcoin broke free and soared to new heights in November. 🦅
#BTC
Back in June 2021, price was consolidating between the 21-week EMA (green) and 50-week EMA (blue) after a crash
Right now, Bitcoin is consolidating between the same EMAs after a crash
(By the way, $BTC indeed broke out from its triangle by late July 2021 to reach new All…
— Rekt Capital (@rektcapital) March 17, 2025
Rekt Capital further noted that the selling pressure on Bitcoin has waned, much like the final notes of a symphony fading into silence. Recent sell-offs have been met with lower-than-usual volume, a clear sign that the bears are losing their grip. This has paved the way for the bulls to take charge, making last week a buyer-dominated period. Similar shifts in the past have often heralded strong uptrends. 📈
CryptoQuant, the oracle of on-chain data, has observed that Bitcoin is currently undergoing a deleveraging phase, a process akin to a market cleanse. Historically, these phases have created short- to medium-term buying opportunities and set the stage for recoveries. Previous cycles have shown that Bitcoin often bounces back with vigor after such resets. 🌱
The BTC market is undergoing deleveraging
“This chart highlights such reset phases by identifying moments when the 90-day open interest change turns negative. Historically, each past deleveraging like this has provided good short-to medium-term opportunities.” – @Darkfost_Coc
— CryptoQuant.com (@cryptoquant_com) March 17, 2025
The rise in the 3-6 month UTXO age bands, which indicate the length of time Bitcoin has been held, is another telling sign. CryptoQuant’s analysis on Mar. 15 revealed that the number of coins in this category is on the rise, much like the tide turning. This suggests that more investors are choosing to hold onto their Bitcoin rather than sell, reducing the available supply. In previous cycles, this type of accumulation has played a crucial role in forming market bottoms and igniting new rallies. 🌊
Despite these optimistic signals, US-based Bitcoin ETFs have seen outflows for the fifth consecutive week, a record-breaking streak. In April 2024, four weeks of outflows set the previous record. While this may hint at short-term uncertainty, Bitcoin could be on the cusp of a significant move if selling pressure continues to wane and accumulation increases. A breakout may be imminent if history repeats itself. 🚀
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2025-03-18 07:00