Bitcoin post-halving price consolidation may last 2 months – Bitfinex
According to analysts at cryptocurrency exchange Bitfinex, Bitcoin may experience up to two months of price consolidation after the halving.
The latest edition of the Bitfinex Alpha market report states that Bitcoin (BTC) may continue to be the price action benchmark for the crypto market in May, and the leading indicator for the overall crypto market capitalization.
According to the report, the macroeconomic environment is more resilient than in previous years and the possibility of a rate cut in the short term is low.
In addition, overall consumers and businesses are “better prepared and informed” about the state of the underlying economy compared to previous crypto market cycles, the analysts said.
“Thus, we believe we could see a 1-2 month consolidation in Bitcoin price with a $10,000 swing on either side.”
Any positive impact on the price of Bitcoin following the halving that reduced the supply of new BTC to the market will be seen in the coming months, the report added.
“At this point, the economy is expected to perform better, achieving a soft landing and avoiding recession, giving more impetus to crypto assets,” the analysts wrote.
RELATED: Reasons Bitcoin Price Has Fallen 11% Since Halving
Various cryptocurrency traders are offering similar views on Bitcoin's recent rally from its all-time high a month ago.
Michael van de Pop, founder of trading firm MNTrading, suggests that Bitcoin's dominance could be high as traders start shifting their funds to altcoins. Crypto trader Matthew Hyland echoed this and highlighted that Bitcoin's market dominance is losing significant support.
The Bitfinex Alpha report also dived into the technical details of Bitcoin's decline in market dominance. He notes that historically half of Bitcoin have shifted focus to altcoins and gained market share.
“This shift occurs as Bitcoin's reduced supply growth is seen as a long-term bullish trend that increases investor appetite, leading investors to seek higher returns from alternative cryptocurrencies,” the report said.
Related: Bitcoin 4% Dip May ‘Shock' Short-Term Holders as Price Falls Below Average Price
Ether (ETH)'s recent market performance has seen it outperform Bitcoin for two consecutive weeks, a measure that last occurred in February 2023. Bitfinex analysts added that the 7.5% increase in the ETH/BTC metric indicates a strong weekly gain over Bitcoin since ETH. The beginning of the year.
The report also highlights Ether's long-term role as a proxy for the altcoin market, making it a historic first mover before other altcoins catch up with market trends.
Checkmate, a leading on-chain analyst at blockchain data firm Glasnode, also commented on Bitcoin's recent rally. He explained that after Bitcoin's recent all-time high in mid-March, a slow “upgrade” is underway across Bitcoin futures.
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