Bitcoin is struggling to break above $60,000 after falling into a devastating downtrend this week.
Bitfinex analysts shared their latest insights on BTC in May, predicting that the world's leading cryptocurrency will continue to serve as a benchmark for market price action, indicating market capitalization across asset classes.
Bitcoin consolidation continues
Analysts said in their latest statement that Bitcoin is becoming increasingly correlated with macroeconomic indicators and traditional financial market indices, especially as more financial institutions allocate a portion of their portfolios to cryptocurrencies, especially BTC. It pointed out.
Therefore, they expect the short-term economic environment to have a significant impact on the value of crypto assets. Although there are no immediate rate cuts, the current economic environment is resilient and consumers and businesses are better prepared and informed than in previous cycles.
Analysts at Bitfinex believe that Bitcoin will remain at roughly the same price over the next month or two, with fluctuations within the $10,000 range. It is believed that this is because there will be no major changes in the economy soon. However, analysts also believe that the recent halving event will have a positive impact on the stock price later on.
“As a result, we believe the Bitcoin price could trade in the $10,000 range for one to two months. The positive impact of the halving, which resulted in a reduction in Bitcoin supply, We expect it to emerge in the later months. At present, the economy has also achieved a soft landing and avoided recession and is expected to perform better, giving further momentum to crypto assets.”
A low-risk scenario for Bitcoin?
Rekt Capital's latest analysis, a prominent crypto analyst said that the previously predicted “danger zone” has come true after Bitcoin’s recent halving. He noted that Bitcoin's behavior mirrors what happened in 2016, when it was at a similar stage in the market cycle.
Specifically, Rekt Capital stated that Bitcoin has recently fallen below the re-accumulation range lows, a pattern reminiscent of what happened in 2016. At that time, the deviation was about -17%, but this time in 2024, the deviation is about -17%. -6% for now. This suggests that the downside move is less severe compared to previous cycles, indicating a potentially lower-risk scenario for Bitcoin in the current market cycle.
