$BTC In previous market cycles, Bitcoin usually found its bottom and then spent around 3 to 5 months in consolidation before starting a major bull run.
This time, however, there is a possibility that the bottom could already be in, reducing the chance of another deep bear market for both Bitcoin and altcoins. Instead of a long consolidation phase, the market could move much faster.
If Bitcoin enters a consolidation range, many traders may assume that the bottom has been confirmed. Once the price starts recovering, a 25% rally could attract more buyers who believe the bull run has begun. After that, Bitcoin could pump another 15%, creating strong bullish sentiment. At that point, the market could set a large liquidity trap by taking out late long positions before resuming the broader recovery trend.
This time, however, there is a possibility that the bottom could already be in, reducing the chance of another deep bear market for both Bitcoin and altcoins. Instead of a long consolidation phase, the market could move much faster.
If Bitcoin enters a consolidation range, many traders may assume that the bottom has been confirmed. Once the price starts recovering, a 25% rally could attract more buyers who believe the bull run has begun. After that, Bitcoin could pump another 15%, creating strong bullish sentiment. At that point, the market could set a large liquidity trap by taking out late long positions before resuming the broader recovery trend.