Bitcoin (BTC) has been relentless in its attempts to break through the $60,000 mark on Friday after earlier collapsing below $57,000.
Bitcoin's collapse on May 1st, which was caused by a number of factors, including the upcoming Fed rate decision, the outflow of funds from the US spot Bitcoin ETF, and disappointment over the launch of crypto ETF trading in Hong Kong, caused panic in the cryptocurrency market and speculation of a further decline in the price of BTC.
However, analysts were quick to reassure the crypto community, pointing to Bitcoin's stability and potential for further growth.
Rekt Capital, a well-known crypto analyst, emphasized on its X page that the current dynamics of the Bitcoin price are fully consistent with its historical movement after halving in 20216 and 2020.
"Bitcoin has once again repeated the history of 2016 in this cycle, recently deviating below the current low of the re-accumulation range. In 2016, this deviation was -17%, while in 2024, the deviation so far is -6%," he wrote.
This decline in the cycle suggests a potentially less risky scenario for Bitcoin's future growth.
At the same time, Bitfinex analysts point out that more and more financial institutions are allocating a portion of their portfolios to cryptocurrencies, especially BTC. In addition, they believe that the recent halving will have a positive impact on the price of Bitcoin in the future.
Quinten Francois, co-founder of WhereAt Social, noted that the current performance of BTC after the launch of crypto ETF trading in Hong Kong is similar to what was seen after the launch of spot Bitcoin ETFs in the US. Within 12 days of the launch of the spot Bitcoin ETF in the US, the price of BTC collapsed from over $46,000 to $39,500.
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Quinten Francois emphasized that if the BTC price continues to follow the same trend, it will soon show impressive growth.
A crypto trader nicknamed Titan of Crypto informed his users on X that the longer the BTC consolidation lasts, the higher the price will rise above the trend line.
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At the time of writing, BTC is trading at $59,696, showing an increase of 3.82% in the last 24 hours.
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