Bitcoin's Consolidation: Bull Cycle Intact Despite Mixed Sentiment

Bitcoin's (BTC) recent consolidation has sparked a mixed sentiment in the crypto market, with some analysts seeing it as a potential boost for the bull cycle. Despite the prevailing negativity, technical indicators suggest that the bull cycle remains intact.

Bitcoin has been trading above the 200-week and 200-day moving averages, signaling a bullish condition. However, the flagship crypto has been in a sideways trend since reaching an all-time high of $109,356 in mid-January. This consolidation has dampened expectations of a bull run and affected the altcoin market.

The Relative Strength Index (RSI) on Bitcoin's monthly chart has not triggered a top, indicating that the cryptocurrency is not in the overbought region and still retains bullish momentum. Additionally, the breakdown in the Dollar Currency Index (DXY) has been favorable for risk assets, including cryptocurrencies.

A renowned crypto analyst predicts a potential trend reversal and upsurge in the cryptocurrency market between February and early March. However, he acknowledges the possibility of Bitcoin's price dropping lower before the bounce. The analyst believes that the prevailing negative sentiment across the crypto market is a good sign for the bull market, as it shakes out weak hands and wipes out liquidity, resetting the market to keep going higher.