Bitcoin (BTC) market remains in prolonged consolidation with the overall market cap approaching $3 trillion as analysts eye a possible breakout that could push the market higher.

The crypto market is showing signs of prolonged consolidation as the overall market cap approaches $3 trillion.

The price of bitcoin (BTC) dropped 0.8% over the past 24 hours to $95,040 by 03:30 ET (07:30). Ether (ETH) remained nearly flat in the same period.

Among the top ten cryptocurrencies, only XRP and Cardano (ADA) dropped 2%, while dogecoin (DOGE) fell 3%.

Spot bitcoin exchange-traded funds (ETFs) lost $56 million on Wednesday, snapping an eight-day streak that saw nearly $3 billion flow into these U.S.-listed products.

Markets have been generally range-bound in the past week, setting the course for what could be an explosive move higher, some say.

"Such long consolidations usually accumulate strength for further movement. The next major trigger is likely to be Friday’s labour market data," Alex Kuptsikevich, FxPro chief market analyst, said in an email.

"For the past five days, the market has fluctuated in a very narrow range, with some tendency towards shallower declines. Still, it has been unable to exceed its 200-day moving average, which is now passing through $3.01 trillion. A global positive is needed for a breakout, but it would open the way to the $3.5 trillion area," Kuptsikevich added, highlighting strong movements in altcoins.

Pat Zhang, head of research at WOO X, shared the same view. "BTC continues to experience volatility, forming a consolidation range between $93,000 and $95,000 since April 25, building momentum for a potential breakout," he said in a Telegram message.

"The average funding rate for BTC has been negative over the past week, which is rare, indicating intense whale activity both on and off exchanges."

Over the past two years, the financing rate for bitcoin contracts has been negative only four times, specifically during Sept 19- Sept 22, 2023, Oct 20-Oct 27, 2023, Aug 16- Aug 24, 2024, and Sept 10- Sept 17, 2024.

"Following these periods of negative financing rates, BTC experienced strong upward trends, suggesting that whale accumulation could be positioning BTC for a potential upward move," Zhang pointed out.

Macroeconomic sentiment remains dented as traders globally keep an eye on the next steps made by President Donald Trump in the ongoing tariff tussles.

According to Bloomberg, Trump acknowledged on Wednesday that his tariff program had a perception problem and posed a significant political risk, yet he remained determined to continue. He said "potential deals" with South Korea, India, and Japan were already in place and that a deal with China was progressing in his favor.