Bitcoin Recovers 1.38% After Selloff, Eyes $200,000 Rally

Bitcoin (BTC) is currently experiencing a bullish consolidation phase following a significant market selloff. The price of Bitcoin dropped to as low as $76,624.25 in the past week, but it has since shown signs of recovery. This consolidation period could potentially be a precursor to a substantial rally for the leading cryptocurrency.

At the time of writing, the price of Bitcoin was trading at $83,927.24, reflecting a 1.38% increase over the past 24 hours. The coin has fluctuated between a low of $82,017.90 and a high of $84,725.32, indicating a potential breakout. Market analyst Rekt Capital highlighted a historical trend from June 2021, where Bitcoin's price consolidated between the 21-week Exponential Moving Average (EMA) and the 50-week EMA following a crash. This pattern is similar to the current market conditions, where Bitcoin is consolidating between the same EMAs after a recent price slump.

In June 2021, Bitcoin's price increased from $33,000 to $42,000, with an average price of $37,500. From this point, the coin surged by over 123.95% to its current price of $83,927.24. If history repeats itself, Bitcoin could potentially soar to nearly $187,280, or approximately $200,000.

Market data from Glassnode indicates that Bitcoin currently has a high of 0.1, suggesting sustained buying pressure despite the market selloff. The analytics platform also noted that the coin's distribution remains dominant overall. Additionally, data from IntoTheBlock shows a 5.34% increase in large transactions to $34.7 billion, indicating a shift in market sentiment among major players. This trend is further supported by a 24% surge in Bitcoin trading volume on crypto exchanges, signaling sustained positive sentiment.

The price movements of Bitcoin have a significant impact on the broader cryptocurrency market. Earlier predictions considered the potential influence of geopolitical events, such as the peace deal between Trump and Putin over Ukraine, on the market's trajectory. Experts believe that positive developments in these conversations could ignite a bullish rally in the broader market. While the spot Bitcoin ETF market has seen outflows over the past week, Bitcoin is positioned to be the biggest beneficiary of any positive shifts. Rekt Capital's historical forecast suggests a potential price target of $200,000 for Bitcoin, while experts like Cathie Wood predict a deflationary boom driven by institutional and governmental adoption of Bitcoin.