When BTC prices consolidate in a triangle, investors should be wary of a potential false breakout. The latest correction has brought Bitcoin’s relative strength down to 40%, similar to three previous corrections since early 2023. Redefining the bull/bear market price line may change the previous market view, which was previously regarded as a bearish signal at $68,300.

Personally, I believe that if Bitcoin can rise back above $60,000 and remain stable, it may usher in a good rebound. Another scenario is that the price falls below US$58,000 to US$56,000 and continues to consolidate and repair, which will provide investors with sufficient time to make fixed investment purchases.

[BitMEX co-founder Arthur Hayes said in his latest blog post titled "Danger in May" that he is optimistic about the trend of Bitcoin. 】

He analyzed the potential impact of recent changes in U.S. monetary policy on the crypto market. He pointed out that the Federal Reserve decided to reduce the monthly balance sheet shrinkage rate from US$95 billion to US$60 billion, which is equivalent to US$35 billion in new liquidity per month.

At the same time, the U.S. Treasury Department revealed in its latest quarterly borrowing and repayment report that in order to meet funding needs before the end of May, it will issue additional short-term Treasury bonds with maturities of 4, 6 and 8 weeks in the near future, which is expected to bring additional liquidity to the market. USD liquidity.

He mentioned that after Republic First Bank, a small U.S. bank, went bankrupt, the FDIC used insurance funds to protect the interests of all depositors in order to avoid a run on deposits. This means that the U.S. authorities have essentially added $6.7 trillion in contingent liabilities to the banking system across the country.

He believes that these factors will continue to inject dollars into the market, reduce the downward pressure on cryptocurrencies, and promote Bitcoin to stabilize and rebound in the coming months. He predicted that Bitcoin may have bottomed near $58,600, and will then return to above $60,000 and consolidate in the $60,000-70,000 range until the end of the northern hemisphere summer. He also revealed that he is optimistic about the rebound market and is currently buying SOL and other tokens at low prices.

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