Bitcoin is struggling to climb above the $60,000 mark after a devastating downtrend this week.
Bitfinex analysts have shared their latest insights on BTC for May, predicting that the world’s leading cryptocurrency will continue to serve as the price action benchmark for the market, indicative of the entire asset class’s market cap.
Bitcoin Consolidation to Continue
In their latest statement, the analysts noted that Bitcoin has become increasingly correlated with macroeconomic indicators and traditional financial market indices, especially as more financial institutions allocate a portion of their portfolios to cryptocurrencies, particularly BTC.
As such, they anticipate that the short-term economic environment will significantly influence crypto asset values. Despite the absence of immediate rate cuts, the current economic environment is resilient, with consumers and businesses better prepared and informed compared to previous cycles.
Bitfinex analysts think that Bitcoin will stay at about the same price for the next 1-2 months, trading within a range with fluctuations of $10,000 on either side. They believe that this is because there won’t be any big changes in the economy soon. However, analysts also believe that the recent halving event will have a positive effect on its price later on.
“As a consequence we believe we could see a 1-2 month consolidation in Bitcoin prices, trading in a range with swings of $10,000 on either side. We expect the positive impact of the halving, which has brought about a reduction in Bitcoin supply, will be seen in later months. At this point, the economy is also expected to be performing better, having achieved a soft landing and avoiding a recession, providing further impetus to crypto assets.”
Less Risky Scenario For Bitcoin?
In Rekt Capital’s latest analysis, the prominent crypto analyst said that the previously predicted “Danger Zone” after Bitcoin’s recent halving has materialized. He noted that Bitcoin’s behavior has echoed what happened in 2016, during a similar phase in the market cycle.
Specifically, Rekt Capital said that Bitcoin has recently dropped below the Re-Accumulation Range Low, a pattern reminiscent of what occurred in 2016. Back then, the deviation was around -17%, whereas this time around, in 2024, the deviation stands at -6% so far. This suggests a less severe downward movement compared to the previous cycle, indicating a potentially less risky scenario for Bitcoin in the current market cycle.
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