Friday's quick tumble showed less interest from dip buyers, suggesting that a bottom might be near, Santiment 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.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.
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. Bitfinex analysts noted in a Friday report that bitcoin's recent weakness happened amid a surging U.S. dollar with interest rate cut expectations tempered, and said the lull could continue into early summer.