All Roads Lead To Chopsolidation
Bitcoin is threatening to leak lower once again, and is peering into the abyss at $64k...Is the market actually ready for another leg lower? Is the path of least resistance actually to the downside?
G’day Folks,
Cast your mind back to May 2024, five months after the Bitcoin ETFs had launched, and two months after we hit the first fresh ATH of the cycle at $73k in March.
At that time, we published a piece titled Expecting Chopsolidation, which outlined my reasoning for why I thought the price was likely to chop painfully sideways for many months, despite many calling for the moon.
Markets do not travel up or down in a straight line, and major price moves require commensurate periods of either sideways consolidation, or a counter-trend correction/rally to digest it.
The Bitcoin price is currently peering over the edge of $64k at the time of writing, and it has plenty of folks feeling pretty on edge about yet another leg down. There are a lot of folks calling for impending doom.
Remarkably, we’re more or less at the exact same price as May-2024 when I first coined the term chopsolidation. In this piece, I want to assess whether the bear market is going to keep leaking lower, or whether we can learn a lesson or two from the last time we experienced a lengthy bout of chopsolidation.
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