- Bitcoin is currently facing a struggle to cross the $60,000 mark due to a recent downtrend. Bitfinex analysts have shared their latest insights on Bitcoin for May, predicting that the leading cryptocurrency will continue to serve as the price action benchmark for the market.
- 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.
- Analysts believe 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 also believe that the recent halving event will have a positive effect on its price later on.
Bitcoin is struggling to cross the $60,000 mark. Bitfinex analysts predict that Bitcoin will continue to serve as the price action benchmark for the market and anticipate that the short-term economic environment will significantly influence crypto asset values.
Bitcoin Consolidation to Continue
According to Bitfinex analysts, Bitcoin has become increasingly correlated with macroeconomic indicators and traditional financial market indices. This correlation is due to more financial institutions allocating 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.
Impact of the Halving Event on Bitcoin’s Price
Bitfinex analysts believe 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. This prediction is based on the assumption that there won’t be any significant changes in the economy soon. However, analysts also believe that the recent halving event, which has brought about a reduction in Bitcoin supply, will have a positive effect on its price later on.
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.
Conclusion
Bitcoin is currently facing a struggle to cross the $60,000 mark. However, analysts believe that the cryptocurrency will continue to serve as the price action benchmark for the market. The short-term economic environment is expected to significantly influence crypto asset values. Despite the recent downtrend, analysts predict a positive impact on Bitcoin’s price due to the recent halving event. Furthermore, the current market cycle suggests a potentially less risky scenario for Bitcoin compared to the previous cycle.
