Bitcoin's Price Consolidation May Lead to New Rally

According to CryptoPotato, Bitcoin's price has been in a consolidation phase for nearly three months after reaching a new all-time high of approximately $74K. Despite not achieving a new peak since then, a fresh rally could be on the horizon. Bitcoin's daily price action has been erratic, with the market consolidating within a descending channel. Currently, the asset is testing the upper boundary of this channel and the $68K level. Although it has not yet broken through to the upside, the momentum remains bullish, suggesting a breakout could occur at any time. If this happens, the market could rise towards the $75K all-time high and potentially set a new record. The 4-hour chart provides a clearer view of the recent consolidation, with the price fluctuating around the $68K level in a symmetrical triangle pattern. Given the price action within this pattern and the fact that the market has touched the lower trendline of the triangle three times, a bullish breakout seems likely based on traditional price action principles. However, the Relative Strength Index (RSI) remains around the 50% level, failing to indicate a potential short-term direction. Therefore, the direction of a breakout from the triangle will be crucial. As Bitcoin's price gradually moves towards a new all-time high, investor optimism is also increasing. The exchange reserve metric, which measures the total amount of Bitcoin held in exchange wallets, has been steadily declining since February. This reduction in supply has been a contributing factor to the recent rally. The decline has become even more pronounced in recent days, as investors anticipate a rally towards a new all-time high. This decrease in exchange reserve could be just what the market needs to rally.