BTC has been sliding since reaching an all-time high in March.
Friday’s quick tumble showed less interest from dip buyers, suggesting that a bottom might be near, Santiment said.
The lull could continue into early summer, setting up a very bullish second half of the year, Bitfinex analysts said.
Crypto markets are stuck in a lull with digital assets consolidating for the last few weeks, testing investors conviction whether the bull market will resume.
All attempts for a sustained rally over the past weeks have been sold off, the latest instance coming Friday with bitcoin {{BTC}} tumbling nearly 5% from $63,000 to just above $60,000 amid discouraging inflation expectations and hawkish commentary from Federal Reserve policymakers.
Blockchain activity also points to low participation, with transactions on the Bitcoin network falling off a cliff and second-largest ether {{ETH}} turning inflationary.
We have been here before.
The current period resembles the action from April through September of 2023 when bitcoin was stuck in the $25,000-$30,000 range for an excruciating six months. Eventually, cryptocurrencies were able to sustain a multi-month rally, with BTC ultimately hitting an all-time high in March of this year.
“Bitcoin is in the ‘bore you to death’ phase,” Charles Edwards, founder of crypto hedge fund Capriole Investment said in an X post Thursday.
This period of consolidation could last for anywhere between one to six months, he explained, during which BTC will be rangebound with low volatility until market participants lose their patience. The sentiment will be the most negative just before the consolidation ends, he added.
“When you are sufficiently bored from sideways chop, common symptoms will include thinking the halving is priced in, the bull market is over and selling to buy stocks at the bottom,” Edwards said. “Your symptoms and shorts will peak just before the mega rally.”
Said bottom might be near, according to analytics firm Santiment.
“Traders are showing weak ‘buy the dip’ interest in bitcoin’s latest retrace,” Santiment said Friday monitoring social media interactions. “Generally, the crowd’s lack of…
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