The price of Bitcoin dipped under $60,000 momentarily in the run-up to the anticipated halving event. However, despite this brief setback, many traders continue to hold a positive view for Bitcoin’s future value due to recurring bullish trends and increasing institutional investment.
Bitcoin remains in pre-halving “danger zone”
In spite of Bitcoin (BTC) undergoing a recent price decrease, it has managed to regain a significant moving average marker. This development, as noted by well-known crypto expert Moustache in a recent blog post on April 16, has historically indicated the commencement of bull markets during past market trends.
“Many people are expecting much lower prices, but I’m not… BTC reclaimed the [blue] line last month, now backest. When this happened in 2012, 2016 and 2020, Bitcoin was just getting started.”
For approximately a month now, starting from March 14, Bitcoin has been considered in a risky area by well-known cryptocurrency analyst Rekt Capital, as per his blog post on April 17.
“It has been a month that Bitcoin has been in the ‘Danger Zone’ (orange). In that time, Bitcoin has retraced twice -18% in March and now almost -16% thus far.”
In a video published on X on April 17, the anonymous expert expressed the possibility that Bitcoin had started its second accumulation stage.
“We’ve seen the pre-halving retrace take place because -17% downside has occurred already, so maybe we’re slowly transitioning to the re-accumulation period.
After Bitcoin experienced a drop following its price correction, important technical signals have been reinitialized. This implies that Bitcoin is no longer exhibiting signs of being overbought since it declined to 41 on the daily chart, having been at 58 as recently as April 8th.
Bitcoin‘s price dropped by approximately 7% in the last seven days. A possible explanation for this decrease is the escalating geopolitical conflict between Iran and Israel, as suggested by John Patrick Mullin, the CEO and founder of Mantra, in an interview with CryptoMoon.
“A major event took place this week with Iran and Israel. Crypto markets are more fast-moving than any on the planet, hence events like this reflect almost instantly, which is what we’ve seen. What I will say though, is that a bounce back was seen right after, which is very optimistic long term.”
According to Mullin’s perspective, the present market downturn is seen as a beneficial adjustment since the market forecast for the next 18 months continues to be optimistic.
“Another angle to consider is that historically, miners sell BTC around halving, so short term it could be bearish. But these are healthy corrections, as BTC has been bullish consistently for quite a while, so anything offsetting euphoria is good long term.”
Bitcoin ETF inflows will drive post-halving rally
Bitcooin traders stay hopeful due to persistent investments in US Bitcoin exchange-traded funds (ETFs), numbering ten, and the upcoming launch of spot Bitcoin ETFs in Hong Kong within the following fortnight.
Since their launch, Bitcoin ETFs have attracted approximately $12.5 billion in investments, which is equivalent to around 838,000 Bitcoins. The total value of these holdings amounts to about $53.7 billion, as reported by Dune.
After a Bitcoin halving event, there’s typically a phase of price stability. However, the upcoming price trend might deviate from the norm thanks to the recent approval of Bitcoin ETFs, as per Ivo Georgiev, CEO of Ambire. He shared this perspective in an interview with CryptoMoon.
“[This halving] is different because BTC received institutional approval in the form of an ETF, so there’s a lot more retail and institutions watching this one. It doesn’t happen completely in the background as it did before. It isn’t just a party for crypto natives.”
According to Mantra’s CEO, Mullin, the launch of the initial Bitcoin ETFs in Hong Kong will be another significant factor fueling Bitcoin’s price surge.
“More and more ETFs announced globally means an inflow of ‘fresh’ funds that weren’t in crypto before, so this is a factor I still see as underrated by most analysts in terms of the scale of the funds coming in. It’s not just BlackRock and Grayscale and Hong Kong, but many more will come, in size crypto hasn’t seen before.”
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2024-04-18 00:42