Analysis: Bitcoin is in a continuous consolidation phase and will bottom out when market sentiment reaches its lowest point

Charles Edwards, founder of cryptocurrency hedge fund Capriole Investment, recently said that Bitcoin is currently in the most boring consolidation phase, which may last one to six months, during which Bitcoin will fluctuate in the consolidation range until market participants lose patience and end the consolidation after market sentiment reaches its lowest point. Edwards said: "When investors are tired enough of sideways fluctuations, common behaviors include believing that the halving effect has been absorbed by the market, the bull market is over, and selling and buying stocks at the bottom, and these behaviors and short forces will peak before the big rise." Bitfinex analysts pointed out in a report on Friday that Bitcoin's recent weakness occurred against the backdrop of a surge in the US dollar and weakening expectations of interest rate cuts, and this calm trend may continue until early summer. It is expected that in a low-volatility environment, the market will still be uncertain in the short term until QT (quantitative tightening policy) is actually reduced in June. Santiment believes that the market is currently close to the bottom, and the data it observes shows that traders are interested in "buying on dips" in Bitcoin's latest pullback. Generally speaking, investors' lack of confidence is a strong signal that prices are close to the bottom. (CoinDesk)