Bitcoin’s Sideways Movement Predicted for May with Growth Expected Later

The current lull in Bitcoin’s activity may persist until early summer, but a return to growth is anticipated in the third and fourth quarters, according to Bitfinex, as reported by CoinDesk.

“We expect the market to remain uncertain in the short term with low volatility until the actual winding down of QT in June,” the experts noted.

They pointed out that the Federal Reserve announced plans in May to limit the pace of its balance sheet reduction starting in June, which will positively impact dollar liquidity and benefit risk assets like cryptocurrencies.

The decline of the American currency from a six-month peak following the Federal Reserve meeting and a weak employment report marked a turning point in the trend. The weakening of the USD could support the next stage of the digital asset rally, the experts added.

According to Charles Edwards, founder of Capriole Investment, Bitcoin is in the “bore you to death” phase.

Bitcoin is in the “Bore you to Death” Phase. This lasts between 1-6 months and is designed to bore you to death. 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…

— Charles Edwards (@caprioleio) May 9, 2024

He stated that the current consolidation period could last from one to six months, during which prices will remain in a low-volatility range until traders lose patience. Sentiment will be most negative just before the end of the sideways movement, he added.

“When you are tired of the sideways movement, common symptoms will include thoughts that the halving is already priced in, the bull market is over, and selling to buy stocks at the bottom. Your symptoms and shorts will peak just before the mega-rally,” the manager explained.

According to Santiment, the end of the consolidation is near.

? Traders are showing weak #buythedip interest in #Bitcoin‘s latest retrace down to as low as $60.2K today. Generally, the crowd’s lack of faith is a strong sign of prices being close to a #bottom. Track social interest levels to see if #FUD stays high. https://t.co/cZjTWcCnL2 pic.twitter.com/Nj19XkIdgq

— Santiment (@santimentfeed) May 10, 2024

“Traders are showing weak interest in Bitcoin’s latest retrace. Overall, the crowd’s lack of faith is a strong sign that prices are close to a bottom,” the specialists indicated.

Standard Chartered recently stated that the leading cryptocurrency has already formed a low at $56,500, confirming a target of $150,000 by the end of the year and $200,000 by the end of 2025.

Earlier, trader and analyst Rekt Capital claimed that Bitcoin had reached a local bottom at $57,000 and entered an accumulation phase.

Former BitMEX CEO Arthur Hayes suggested that digital gold prices could surpass $60,000 and move towards $70,000 by August.