Svmuu News: Bitcoin (BTC) has been trading in a narrow range between $59,000 and $60,000 for the fifth consecutive day, but analysts warn that this “calm” market may conceal greater risks, as the current consolidation is taking place within a downtrend.
Alex Kuptsikevich, Chief Market Analyst at FxPro, noted that the current movement resembles the consolidation of Bitcoin between $55,000 and $70,000 from March to October 2024, though the two situations have different contexts.The previous consolidation occurred in a bull market, whereas this current consolidation is taking place below support levels, with both the 50-day and 200-day moving averages trending downward, indicating that the market remains bearish.
Kuptsikevich noted that if this consolidation pattern breaks down rather than forming a basis for a rebound, the next key support zone for Bitcoin could be around $40,000.
On-chain data is also signaling pressure. CryptoQuant analyst Darkfost noted that long-term holders may be engaging in loss-cutting sales; historically, this phase is typically accompanied by short-term pressure but could also present a long-term buying opportunity.
Meanwhile, market demand remains relatively weak, with both the number of active addresses and on-chain transaction activity at recent lows.Financial pressures facing Strategy, a major corporate holder of Bitcoin, are also heightening market concerns. Its preferred stock (STRC) recently fell to around $71, while its common stock dropped approximately 25% over the past week, hitting a new low since February 2024.
Strategy previously indicated that it may sell more than $1 billion of its Bitcoin reserves to improve its financial position, a move seen as a major shift from founder Michael Saylor’s “never sell” strategy.
In addition, the strengthening U.S. dollar and continued capital inflows into AI-related assets in the U.S. stock market have also put pressure on dollar-denominated risk assets such as Bitcoin. Currently, BTC is expected to end the second quarter with a quarterly decline of about 13%, while U.S. stocks are performing strongly due to the AI investment boom. (CoinDesk)