As Bitcoin embarked on its post-halving adventure, the cryptocurrency market witnessed a fascinating tale of highs and lows, leaving analysts pondering its next move.
Initially soaring to $64,000 on the halving day, Bitcoin briefly flirted with $67,000 before gradually descending, eventually slipping below $57,000 by May 1st. Currently standing at $57,362, with a 7% dip over 24 hours and a significant 17% slide over the past month, Bitcoin’s path seems to be marked by a phase of volatile consolidation in the near future.
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What lies ahead for the king? Let’s find out.
Insights from Bitfinex
In a recent report, Bitfinex analysts projected Bitcoin to hover within a price range, swinging by $10,000 on either side. They attributed this trend to a growing appetite for risk among investors, especially in alternative cryptocurrencies post-halving. They believe that the full impact of reduced Bitcoin supply on its price may unfold in the coming months, particularly as economic conditions show signs of improvement.
Altcoins on the Rise?
Contrary to traditional views, some analysts advocate for directing investment focus towards altcoins, arguing that they offer more promising returns in the current climate.
Its Bitcoin vs Altcoins Now…!
A closer look at technical analysis reveals Bitcoin’s declining market dominance, with attention gradually shifting towards altcoins, notably Ether (ETH), which has consistently outperformed Bitcoin in gains. This tilt towards alternative cryptocurrencies mirrors previous post-Bitcoin halving patterns, as reduced supply growth entices investors towards potentially more rewarding opportunities.
What’s Behind BTC Consolidation?
Additionally, on-chain analysis suggests a gradual “de-leveraging” across Bitcoin futures since mid-March’s all-time highs, further contributing to Bitcoin’s consolidation phase. Bitcoin’s recent price drop, as observed by Greenspan, was somewhat expected given the downturn in the stock market and overall economic situation. Some analysts had predicted this decline after Bitcoin’s fourth halving, with JPMorgan forecasting a potential drop to $42,000 in March 2024.
However, Markus Thielen, CEO of 10x Research, suggested Bitcoin might fall to $52,000, citing a slowdown in funds flowing into Bitcoin exchange-traded funds (ETFs) as a primary reason for the recent rally’s slowdown.
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