Analysis: Bitcoin remains "calm" for 5 consecutive days, risks hidden beneath the fluctuations, likelihood of dropping to $40,000 increases

Jinse Finance reported that Bitcoin has been trading in a narrow range between $59,000 and $60,000 for the fifth consecutive day. Analysts warn that this "calm" market could be hiding greater risks, as the current consolidation is occurring within a downtrend. FxPro Chief Market Analyst Alex Kuptsikevich stated that the current movement is similar to the consolidation Bitcoin experienced between March and October 2024 in the $55,000 to $70,000 range, but the background is different. The previous consolidation took place in a bullish market, whereas the current consolidation is below the support line, and both the 50-day and 200-day moving averages are trending downward, indicating a continued bearish market. If this consolidation breaks downward instead of forming a base for a rebound, Bitcoin's next major support area may be around $40,000. In addition, the strengthening US dollar and the continued flow of capital into US stock AI-related assets are putting pressure on Bitcoin and other US dollar-denominated risk assets. Currently, Bitcoin is expected to end the second quarter with a quarterly decline of about 13%, while US stocks have performed strongly due to the AI investment frenzy.