According to recent analysis, Bitcoin (BTC) appears strong for the long term investment, yet it’s important to be aware of potential future price drops.
On April 17th, in a discussion on X (previously known as Twitter), well-known Bitcoin trader and analyst Mikybull Crypto stated that the Bitcoin bull market was progressing according to plan.
BTC price enduring “normal correction”
Bitcoin is struggling to reclaim lost ground after diving 15% from all-time highs.
The price of Bitcoin has become increasingly volatile and is approaching the $60,000 support level. This unexpected price instability has caused some investors to rethink their previously optimistic outlooks, leading to a surge in predictions for potential price drops.
For Mikybull Crypto, however, it is “business as usual” for a classic Bitcoin bull market.
“Bitcoin goes through regular adjustments, just like it has after every halving event, leading up to its peak in the cycle,” he explained.
“Currently, it is displaying the kind of Wyckoff re-accumulation range it did in Dec 2023 that led to $73k in 2024.”
The initial chart presented displayed a Wyckoff pattern indicating a tendency to eventually rise.
Bitcoins block reward reduction, happening on April 19, was previously mentioned in the thread. historically, this event has not resulted in significant short-term price growth for Bitcoin.
Based on potential locations for local cryptocurrency lows, Mikybull identified regions with significant buying demand, pointing to $57,000 as a potentially appealing price point.
“Smart money faces the challenge of dealing with large pools of approximately $2.2B worth of liquidation orders priced around $57,000. Simultaneously, they aim to buy back for a potential market rally following Bitcoin’s halving event,” he noted, according to CoinGlass data.
Previously, CryptoMoon shared news about increasing bid liquidity around $60,000 that could potentially cause the market price to decrease.
Bitcoin seen “rolling over” amid 1-month lows
After the opening of Wall Street on April 17, it seemed that investors were actively withdrawing their funds once more.
The price of Bitcoin dipped below $61,000 according to data from CryptoMoon Markets Pro and TradingView, marking a new low not seen since late March.
Traders, be prepared for significant price swings and potential large wicks into thin markets, as reported by experienced trader Skew in today’s market analysis before the Wall Street opening.
Macro analysts issued a caution about the possibility of a wider pullback in risk assets, as Mike McGlone, Bloomberg Intelligence’s senior commodity strategist, raised concerns of a “warning sign” scenario when examining Bitcoin’s behavior in relation to gold.
“Bitcoin’s unpredictable yearly fluctuations, which are roughly three times greater than gold and the S&P 500, could lead to significant tests of its growth potential. It seems that gold, an old-fashioned investment, might regain dominance during this period.” He shared this perspective with his audience of X people.
“Bitcoin topping vs. gold and below the 2021 ratio peak might have deflationary implications.”
Mikybull Crypto’s outlook nonetheless delivered an air of calm over Bitcoin’s long-term prospects.
From a broad viewpoint, Bitcoin appears strong and continuing on its course, suggesting that the peak of this particular cycle has yet to be achieved based on historical trends following past halvings.
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2024-04-17 18:25