Bitcoin (CRYPTO: BTC) is struggling to break its resistance level of $22,000 as the market moves sideways.
In early June, the crypto market left the trillion-dollar club; despite the recent short-term uptrend and speculated ‘accumulation,’ the market capitalization hasn’t been able to recover the $400 billion lost.
The current stagnancy in market prices has raised questions about the direction of the trend with a multitude of analysts forecasting a yet-to-come bottom or a bullish trend reversal.
On June 17, BTC hit its 18-month bottom and since then, the market has observed a correction forming a sideways momentum. On Sunday, BTC hit a 7-day high at around $21,800 level before dropping to $20,800 on Monday and rising up again to the press time price of $21,429.
BTC is accumulating as it’s trying to find bullish momentum
Bitcoin miners' revenue is decreasing significantly compared to the cost they incur. In 24 hours, mining revenue has declined by 8%, according to data from CryptoQuant. This indicates that the price is potentially undervalued — along with the increasing miners' motive to hold on to their coins.
Historically, BTC’s bear market lows have had a decline of about -75% to -84% from its last all-time-high duration of 260 days in 2019-20 to 410-days in 2015. The current BTC drawdown hit -73.3% below November 2021 all-time high. Considering the duration of the timeline, the bear market is now “firmly within historical norms and magnitude” says Glassnode.
On-chain data from Cryptoquant show BTC cyclic indicators claim the current stagnancy to be the bottom. Observing previous BTC historical bottoms, consolidation of this asset class is yet to begin.
