Bitfinex Predicts Bitcoin’s Two-Month Consolidation; Highlights Ether’s Market Dominance

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Bitcoin’s post-halving price action has led to a period of consolidation, with analysts suggesting it could last up to two months. Despite trading around $64,000 on the halving date and briefly rallying above $67,000 afterward, Bitcoin has since seen a gradual decline, dropping below $57,000 on May 1st. Currently trading at $57,362, down 7% over the past 24 hours and more than 17% over the past month, Bitcoin’s price movement reflects the expectation of volatile consolidation in the short term.

BTC Tumbles, Altcoins Rises

In the latest report by Bitfinex analysts anticipate Bitcoin to trade within a range with swings of $10,000 on either side, attributing this to increased investor risk appetite in alternative cryptocurrencies following the halving. They predict that any positive impact on Bitcoin’s price due to reduced supply will be seen in later months, especially as the economy performs better and avoids a recession.

Meanwhile, other prominent analysts also suggest that investing in other altcoins is still a better buy right now because they provide the opportunity for higher returns.

Technical analysis reveals Bitcoin’s dropping market dominance, with attention shifting towards altcoins, particularly Ether (ETH), which has outperformed Bitcoin in gains for two consecutive weeks. This shift is historically associated with Bitcoin halvings, as reduced supply growth increases investor risk appetite for alternative cryptocurrencies.

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. Overall, while Bitcoin remains the price action benchmark for the crypto market, analysts expect altcoins to gain traction in the coming months.

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