Analysis: Bitcoin may continue to consolidate and reach a bottom when the market lacks confidence

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 for one to six months, during which Bitcoin will fluctuate within the consolidation range until market participants lose patience and end the consolidation after market sentiment reaches a low point.
Edwards said: When investors get tired enough of sideways volatility, common behaviors include thinking that the halving has been priced, the bull market is over, and selling at the bottom to buy stocks, and these behaviors and short forces will peak before the big rally.
Bitfinex analysts also believe that Bitcoin's recent weakness has occurred against the backdrop of a soaring dollar and weakening interest rate cut expectations, and this calm trend is likely to continue into early summer. It is expected that in a low volatility environment, the market will remain uncertain in the short term until the actual tapering of QT (quantitative tightening policy) in June.
The analyst firm Santiment believes that the market is now close to a bottom, and its data shows that traders are showing interest in "buying the dip" in Bitcoin's latest pullback. Generally speaking, investors' lack of confidence is a strong signal that the price is approaching a bottom.