The recent price movements of Bitcoin (BTC) have drawn comparisons to the volatile period during the COVID-19 pandemic. Analysts have noted similarities in Bitcoin’s consolidation during this cycle and that of the pandemic era.
The taker buy/sell ratio, which indicates bullish or bearish sentiment, has spiked similarly to April 2023. However, the extensive involvement of whales triggered a price rise months later during that time.
Currently, Bitcoin has been consolidating between $25,000 and $26,000 since recent sell-offs. Despite a decrease in buying power and a seller exhaustion constant increase, the control of sellers has diminished, suggesting that a significant plunge is not expected.
With a dearth of buyers in the market, Bitcoin is likely to hover around its current values. The Stablecoin Supply Ratio (SSR), which reflects the supply/demand mechanics between Bitcoin and USD, has also decreased, indicating a fall in buying power. Overall, the market conditions suggest a consolidation season for Bitcoin reminiscent of the COVID era.
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