The crypto market remains in prolonged consolidation with the overall market cap approaching $3 trillion as analysts eye a possible Bitcoin (BTC) breakout that could push the market higher.
Bitcoin hovered near $95,000 on Thursday, while Ether (ETH), BNB Chain’s BNB, and Solana’s SOL remained stagnant. XRP and Cardano’s ADA dropped 2%, while Dogecoin (DOGE) fell 3%.
Spot Bitcoin exchange-traded funds (ETFs) experienced a decline of $56 million on Wednesday, breaking an eight-day streak that saw nearly $3 billion flow into these U.S.-listed products.
Markets have been generally range-bound over the past week, setting the course for what could be an explosive move higher, some analysts predict.
“Such long consolidations usually accumulate strength for further movement. The next major trigger is likely to be Friday’s labor market data,” said Alex Kuptsikevich, FxPro chief market analyst, in an email to CoinDesk.
“For the past five days, the market has fluctuated in a very narrow range, with a tendency towards shallower declines. Still, it has been unable to exceed its 200-day moving average, which is now passing through $3.01 trillion. A global positive is needed for a breakout, but it would open the way to the $3.5 trillion area,” Kuptsikevich added, indicating strong movements in altcoins.
Pat Zhang, head of research at WOO X, mirrored this sentiment. “BTC continues to experience volatility, forming a consolidation range between $93,000 and $95,000 since April 25, building momentum for a potential breakout,” he mentioned in a Telegram message.
“The average funding rate for BTC has been negative over the past week, which is rare, indicating intense whale activity both on and off exchanges,” Zhang elaborated.
Over the past two years, the financing rate for Bitcoin contracts has only been negative four times, specifically during September 19-22, 2023; October 20-27, 2023; August 16-24, 2024; and September 10-17, 2024.
“Following these periods of negative financing rates, BTC has experienced strong upward trends, suggesting that whale accumulation could be positioning BTC for a potential upward move,” Zhang noted.
As these developments unfold, macroeconomic sentiment remains shaky, with traders globally eyeing the next steps from President Donald Trump regarding ongoing tariff disputes.
According to Bloomberg, Trump acknowledged on Wednesday that his tariff program has a perception problem and poses significant political risks, yet he remains determined to forge ahead. He indicated that “potential deals” with South Korea, India, and Japan are already in place, while claiming progress in discussions with China.
In conclusion, as we approach key economic indicators and potential catalysts for market movement, the crypto community remains cautiously optimistic about the ability of Bitcoin to break out of its current consolidation phase, setting the stage for significant price action ahead.
