Big bull markets always start in despair and end in carnival! This is always meaningful!
Analysis: Bitcoin may continue to consolidate and will reach the bottom when the market lacks confidence the most
On May 11, Charles Edwards, founder of cryptocurrency hedge fund Capriole Investment, said that he believes that Bitcoin is currently in the most boring consolidation phase. This consolidation period may last from one to six months, during which Bitcoin will fluctuate in a consolidation range until market participants lose patience and end the consolidation after market sentiment reaches its lowest point.
Edwards said: "When investors are tired enough of sideways fluctuations, common behaviors include believing that the halving has been priced in, the bull market is over, and selling and buying stocks at the bottom, and these behaviors and short forces will peak before the big rise."
Bitfinex analysts also believe that Bitcoin's recent weakness occurred against the backdrop of a surge in the US dollar and weakening expectations of interest rate cuts, and this calm trend may continue until early summer. It is expected that in a low-volatility environment, the market will still be uncertain in the short term until the actual reduction of QT (quantitative tightening policy) in June.
The analysis company Santiment believes that the market is close to the bottom. The data it observes shows that traders are interested in "buying on dips" in Bitcoin's latest pullback. Generally speaking, investors' lack of confidence is a strong signal that prices are close to the bottom.
