After an impressive rally of over 81% in the last five months, Bitcoin is now in a consolidation phase. Analysts suggest this could be a natural breather before the next leg of the rally. “While macroeconomic data and rising tariffs have caused short-term volatility, promising developments in regulation and adoption, such as the SEC’s crypto task force and new ETFs awaiting approval, signal that there is a lot more steam left in this bull run,” said Edul Patel, Co-founder and CEO of Mudrex.
He suggests that retail investors should take advantage of this consolidation phase. “With Bitcoin holding strong at key support levels, market pullbacks offer opportunities for dollar-cost averaging,” he added.
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However, not all experts are convinced that this is the right time to enter the market. “The current market conditions are marked by volatility, driven by macroeconomic factors and regulatory uncertainties. While some may view this dip as a buying opportunity, investors must conduct thorough research and assess their risk tolerance before making any decisions,” said Shivam Thakral, CEO of BuyUcoin. He emphasized that investing should align with individual financial goals rather than reacting emotionally to price movements.Amit Malik, President of JAPA (Japan, Asia Pacific, and Australia) at WadzPay, also sees Bitcoin’s recent dip as a potential opportunity but warns against impulsive decisions. “Historically, buying the dip has proven profitable for fundamentally strong cryptos like Bitcoin and Ethereum, which tend to rebound after corrections. However, prices could fall further due to volatility, regulatory changes, or macroeconomic events,” he said. Malik suggests that investors diversify their portfolios and make informed decisions based on long-term value rather than panic buying.
Ryan Lee, Chief Analyst at Bitget Research, echoed similar sentiments. “Bitcoin has seen a 12% decline from its peak, prompting some retail investors to consider buying the dip based on Bitcoin’s long-term potential, particularly after past halvings and growing retail interest. However, investors should proceed with caution due to possible further declines, regulatory uncertainties, and market volatility.”Lee suggests that those with a long-term investment outlook may find dollar-cost averaging a useful strategy. “It’s essential to align investment decisions with individual risk tolerance and financial goals,” he added.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)