Bitcoin Price Trend Stagnates for Two Consecutive Months: Report

The report indicates that by May, Bitcoin is expected to continue leading the pace of the cryptocurrency market and remains a key indicator of the industry’s overall market capitalization.

Bitcoin Price Momentum to Slow Down Analysts at Bitfinex emphasize that, unlike previous cycles, consumers and businesses are now more informed about the economic fundamentals affecting market trends.

This knowledge could lead to Bitcoin entering a consolidation phase of one to two months. As a result, prices may fluctuate, with potential swings reaching up to $10,000 in either direction.

The anticipated stagnation follows Bitcoin’s peak market dominance, which seems to be waning as liquidity shifts towards altcoins. This shift is attributed to the halving of new Bitcoin supply. Historically, this has increased investors’ risk appetite and shifted focus to altcoins.

“The 57% level of BTC.D represents an important technical and psychological benchmark based on historical data. Once Bitcoin’s dominance reaches this level, it often experiences a sharp rejection, indicating a shift in market sentiment and capital flow from Bitcoin to altcoins. After last week’s halving, we saw BTC.D hit 57% and then sharply decline,” wrote analysts at Bitfinex.

Moreover, market experts are closely monitoring Bitcoin derivatives. The recent decline in implied volatility suggests that Bitcoin may be approaching a relatively calm summer.

Jag Kooner, the head of derivatives at Bitfinex, states: “Summer is typically a period of lower volatility, and traders begin to adjust their positions according to their preferences.”

As the market adjusts to the halving and economic signals, investors are advised to closely follow these developments. They must pay close attention to changes in liquidity and market sentiment, which may determine the pace for the remainder of the year.

Sentiment: Neutral