Bitcoin is poised to peak at $45,000 in May given favorable market conditions

• A slowdown in inflation and a change in market sentiment characterize the bullish outlook.
• The latest research shows that the charts are reflecting a trend that was last seen before the 2019 bull run.

Bitcoin (BTC)’s recent price surge is creating positive sentiment among investors. Market analysts are forecasting the continued rise and the possibility that the price will peak at $45,000 next month thanks to an improving macroeconomic environment.

BTCUSD chart from TradingView

Lead analyst at K33 Research, Ventle Lunde, says BTC is closely matching trends last seen at the start of 2019’s price rally, with a possibility that the value could reach year-to-date highs next month. This year, the digital asset is up about 80%, beating out other risky assets like the Nasdaq index.

In contrast, according to the analyst at K33 Research, last year’s upleg was preceded by a year-long downside momentum, similar to the 2018-2019 bear run, when considering duration and price action.

“The bottom in both cycles lasted about 370 days. And the peak-to-trough return after 510 days of both cycles reached 60%,” Lunde said in the report shared with Coindesk. “Although history is unlikely to repeat itself similarly if the fractal continued, BTC would top out around May 20 at $45,000,” he said.

A slowdown in inflation and the impact on prices

Optimism about Bitcoin comes amid a slowdown in US inflation in March, which means a potential uptick in digital asset absorption, according to Marat Minkin, founder of DeFi app TONBanking. Similar views were shared by Ark Invest’s Cathie Wood, who said last week that volatility in the US economy is driving cryptocurrency adoption.

The bullish Bitcoin price prognosis is also being driven by sentiment surrounding the just-completed Shanghai upgrade on the Ethereum network, which enabled withdrawals for staked Ether among other improvements, Minkin says.

Ethereum (ETH) and Cardano (ADA) are in consolidation after a week-long price surge. At the time of writing, ETH was changing hands at $2,076, a price change of -2.02% over the past day and 11% over the past week, while ADA is down 2% from gaining 13% over the past seven on the day has gone down days. On the other hand, Solana’s SOL is up 5% over the past day and has consolidated weekly gains at 24%, possibly reflecting the launch of Saga, an Android smartphone integrated with the Solana network.

Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers