Bitfinex: The Bitcoin market may be entering a consolidation phase, with no sustained decline

The Bitfinex Alpha report indicates that Bitcoin has recorded the third largest drop in this cycle, falling 25% from its historical high, dropping below $94,000. The downward momentum remains strong on lower time frames; however, the speed of selling and the actual losses for investors have begun to stabilize, suggesting that the market may be entering a consolidation phase rather than a continued crash.

Currently, the trading price of Bitcoin is well below the cost basis of short-term holders (STH) at $111,900, and there are still downward risks before returning to that level.