#consolidation

Consolidation or mild retracement may “be healthy”

Bitcoin ($BTC ) reached new all-time highs of $111,970 on May 22, however, Bitfinex analysts say a continued price increase alone won’t necessarily confirm the uptrend heading into the next quarter.

“A period of consolidation or mild retracement would not only be healthy but also provide a more sustainable foundation for the next leg higher,” the analysts said.

It isn’t unusual for$BTC to consolidate for an extended time after reaching all-time highs. After Bitcoin reached a high of $73,679 in March 2024, it swung within about a $20,000 range until Donald Trump was elected US president that November.

The third quarter of the year has, on average, been Bitcoin’s worst-performing quarter since 2013, with an average return of just 6.03% over the past 11 years, according to CoinGlass data. The next worst quarter on average is Q2, which has historically posted a stronger average return of 27.25%.