The world’s largest cryptocurrency, Bitcoin (BTC), has consolidated over the past week, trading between $67,000 and $70,000 after a brief 20% price correction that saw it fall to $56,400 in early May.

This consolidation period comes as flows restart into the US Bitcoin cash ETF market and selling pressure appears to have eased, both in the ETF market and among Bitcoin investors more broadly.

The pressure to sell Bitcoin is decreasing

According to Julio Moreno, head of research at on-chain market analysis firm CryptoQuant, said Bitcoin’s current price level of $70,000 is different from when it last reached that level in March.

Moreno notes that there is much less selling pressure from investors now, as unrealized gains are only about 3% compared to 69% in early March. This suggests that much of the “intense selling” has been exhausted, as seen in the chart below.

Saintly data also shows that Bitcoin once again eclipsed its market capitalization of $70,000, even though the US stock market was on hiatus for the Memorial Day holiday.

Market intelligence platform Santiment sees this as an encouraging sign as it shows BTC’s ability to perform positively on days when it is not closely correlated with the primary market. stock Exchangeand this has been the case for most of 2022.

The last phase of consolidation before the breakout

Despite this positive momentum, cryptocurrency analyst Rekt Capital did recorded that Bitcoin’s latest weekly candle closed below the high resistance of the ongoing “reaccumulation” phase, which includes around $60,000-$70,000.

This likely condemns the leading cryptocurrency to further consolidation in this range, according to Rekt Capital thesis that two phases remain in the current bull cycle: the post-halving re-accumulation phase and the “parabolic growth phase”.

Historically, Bitcoin has tended to consolidate around historical highs before entering the most exemplary stretch of its bull cycles. According to the Bitcoin analyst, this was indeed the case consolidation they have been at these highs for a long time, especially by the standards of previous cycles.

While there is still room for further sideways trading at these elevated price levels, the time left in this phase is slowly running out. This leads one to believe that it is long awaited after halving the rally, combined with renewed investor sentiment, could push the market’s largest cryptocurrency to even higher levels than the current $73,700 reached in mid-March.

As such, Bitcoin appears to be entering a critical juncture in its current bull cycle. Consolidation i re-accumulation that has dominated the market in recent months may soon give way to another parabolic rally if historical patterns continue.

Currently, BTC has gained 2% in the last 24 hours, which is an escalate of 10% in the last month alone. Bitcoin is currently trading at $70,200.

Featured image from Shutterstock, chart from TradingView.com