Prepare for a Bitcoin Chop Before the Positive Impacts of the BTC Halving Take Place: Bitfinex

Bitcoin is struggling to rise above the $60,000 level after a devastating downtrend this week.

Bitfinex analysts shared their latest insights on BTC for May, predicting that the world's leading cryptocurrency will continue to act as a benchmark for price movement in the market, indicating the market capitalization of the entire asset class.

Bitcoin consolidation continues

In their latest statement, analysts pointed out that Bitcoin has become increasingly linked to macroeconomic indicators and traditional financial market indicators, especially as more financial institutions allocate a portion of their investment portfolios to cryptocurrencies, especially Bitcoin.

As such, they expect the short-term economic environment to significantly impact crypto asset values. Although there are no immediate interest rate cuts, the current economic environment is resilient, with consumers and businesses more prepared and informed than in previous cycles.

Bitfinex analysts believe that Bitcoin will remain at roughly the same price over the next month or two, and will trade within a range with fluctuations of $10,000 on either side. They believe this is because there will not be any major changes in the economy soon. However, analysts also believe that the recent halving event will have a positive impact on its price later on.

“As a result, we believe we could see a month or two of stability in Bitcoin prices, trading in a range with $10,000 fluctuations on either side. We expect the positive impact of the halving, which led to a reduction in the supply of Bitcoin, to be felt in the subsequent months.” At this point, the economy is also expected to perform better, having achieved a soft landing and avoiding a recession, providing more momentum for crypto assets.

A less risky scenario for Bitcoin?

In the latest Rekt Capital analysisA prominent cryptocurrency analyst said that the “danger zone” previously expected after Bitcoin’s recent halving has been fulfilled. He noted that Bitcoin's behavior echoed what happened in 2016, during a similar phase of the market cycle.

Specifically, Reckitt Capital said that Bitcoin has recently fallen below its low reaccumulation range, a pattern reminiscent of what happened in 2016. At that time, the skew was around -17%, whereas this time, in 2024 The deviation stands at -6% so far. This indicates a less severe downward movement compared to the previous cycle, indicating a less risky scenario for Bitcoin in the current market cycle.