Bitcoin, the pioneering cryptocurrency, has recently experienced notable price movements, prompting analysts to assess its future trajectory. Markus Thielen, head crypto researcher at 10x Research, proposes that Bitcoin might undergo an extended consolidation phase akin to its 2024 price action.
In March 2024, Bitcoin achieved an all-time high of $73,679 before entering a consolidation period that lasted until November of the same year. During this phase, Bitcoin’s price fluctuated within a range of approximately $20,000, reflecting market uncertainty. Thielen observes that the current price chart exhibits a “High and Tight Flag” pattern, typically considered a bullish continuation signal. However, he notes that the presence of two such flags, rather than a single, well-defined formation, weakens this bullish outlook, indicating market indecision.
Adding to this sentiment, data from spot Bitcoin exchange-traded funds (ETFs) reveal a lack of significant “buy-the-dip” activity. Since early March, when Bitcoin’s price dipped below $90,000, U.S. spot Bitcoin ETFs have recorded outflows totaling approximately $1.66 billion. This trend suggests that, despite recent price corrections, there is limited incentive or willingness among investors to deploy additional capital into Bitcoin.
As of March 15, 2025, Bitcoin is trading at $84,290, marking a 23% decline from its January all-time high of $109,000. Thielen remains cautious about the short-term prospects of Bitcoin’s uptrend, stating that while it may be prudent to close short positions at this stage, there is little evidence to support a strong price recovery in the immediate future.
This analysis underscores the importance for investors to closely monitor market patterns and investor behavior, as Bitcoin may continue to consolidate in the coming months, reflecting a period of market indecision.
