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Bitcoin Mirroring Moves Post-March 2020 Crash, Says QCP Capital
According to QCP Capital, Bitcoin has been meticulously replicating its pattern after the significant crash in March 2020.
BTC Price Breakout Anticipated by July
Fresh research forecasts that Bitcoin's ongoing "consolidation" phase might conclude by July, reviving bullish sentiments around a potential BTC price surge.
In its market update on June 2nd, trading firm QCP Capital expressed optimistic leanings towards both Bitcoin and the biggest altcoin, Ether.
QCP Capital's Predictions: Bitcoin's Consolidation Phase "Perfectly Executed"
Since mid-March, Bitcoin's price has been oscillating between $26,000 and $31,000. However, an increasing number of analysts are forecasting an end to this lateral movement.
QCP Capital is among those expecting a trajectory shift as early as the month's end.
The trading firm asserts that the disappearing drama surrounding the United States debt ceiling will result in Bitcoin closely reflecting its consolidation and breakout phase from 2020.
"With the Debt ceiling bill passing through the House and Senate, extending the ceiling until January 2025, we can now set aside political distractions until the next US Presidential elections next year," the firm noted.
"This leads us back to our routine programming of authentic macro and crypto narratives."
QCP Capital perceives a similar pattern in 2023 to the beginning of the COVID-19 outbreak, albeit with different price levels.
In the pandemic's early days, the Federal Reserve pumped an enormous $4 trillion of liquidity, bolstering risk assets and ultimately propelling Bitcoin to record highs.
"In March 2020, we were teetering on the brink of a massive price plunge below 5k when the Fed turned on the liquidity faucet, resulting in a soaring price increase as we neared the halving cycle the next year," the firm stated, referencing a previous installment of its "Just Crypto" newsletter series.
"Much like in March 2023, BTC was on the edge of dropping below 20k due to the banking crisis risk-off when the Fed once again turned on the liquidity flow, pushing us back above 30k as we approach the next halving cycle next year."
If this pattern persists, the next phase is clear: a sudden exit from the trading range, with QCP gearing up for long options plays.
"We anticipate that the ongoing consolidation phase will soon reach its conclusion, possibly this month. Consequently, we recommend preparing for a forthcoming significant shift through long 3m and 6m strangles, with a bias towards the long call side," the firm added.
A related graph highlights June as a period of heightened volatility for both BTC and ETH since 2019.
The Prospect of a BTC Price Surge
As reported by Cointelegraph, additional Bitcoin indicators suggest an imminent shift in the market.
An on-chain metric scrutinizing hodler behavior in late May classified BTC/USD as transitioning from a "capitulation" phase towards "euphoria."
Simultaneously, numerous market participants posit that BTC price movement is at a pivotal juncture, with an impending decision on its path.
On June 2nd, BTC/USD was trading near $27,000, as shown by data from Cointelegraph Markets Pro and TradingView, marking a 7% decline at the end of May.
