Prepare for Bitcoin price fluctuations before the positive effects of halving occur

Bitcoin is facing a hurdle in crossing the $60,000 mark after a stronger downward trend this week.

Bitfinex analysts shared their latest insights on Bitcoin for May, predicting that the leading cryptocurrency will continue to serve as a reference price for the market, indicating the market capitalization of the entire asset class.

Continuation of Bitcoin consolidation

In their latest statement, analysts noted that Bitcoin is increasingly correlated with macroeconomic indicators and traditional financial market indices, especially as more financial institutions allocate a portion of their portfolios to cryptocurrencies, particularly Bitcoin.

They predict that the short-term economic environment will significantly impact the values of crypto assets. Despite the absence of current interest rate cuts, the current economic environment is resilient, with consumers and businesses better prepared and informed compared to previous cycles.

Bitfinex analysts believe that Bitcoin will remain at approximately the same price for the next 1-2 months, trading within a range with fluctuations of $10,000 on either side. They believe this is because there will not be significant changes in the economy soon. However, analysts also believe that the recent halving event will positively impact its price later.

– As a result, we believe we could see 1-2 months of Bitcoin price consolidation, trading in a range with fluctuations of $10,000 on either side. We expect the positive effect of halving, which has led to a reduction in Bitcoin supply, to be seen in the coming months. At this point, the economy is also expected to be better, as it has achieved a soft landing and avoided recession, providing further impetus to crypto assets – the analysts highlighted.

Less risky scenario for Bitcoin

In the latest analysis by Rekt Capital, a prominent crypto analyst stated that the previously predicted ‘danger zone’ after the recent Bitcoin halving has materialized. He noted that Bitcoin’s behavior reflects what happened in 2016, during a similar phase of the market cycle.

Specifically, Rekt Capital stated that Bitcoin recently fell below the re-accumulation range low, a pattern reminiscent of what happened in 2016. At that time, the deviation was around 17 percent, while this time, in 2024, the deviation is 6 percent so far. This suggests a less sharp downward movement compared to the previous cycle, indicating a potentially less risky scenario for Bitcoin in the current market cycle.