Bitcoin At Crossroads Ahead Of Halving: Will BTC Fall To $53,600?
03 Abril 2024 - 1:30PM
NEWSBTC
Bitcoin prices are volatile, recently dropping from the peak of
over $73,000 in March to the current spot levels. Analysts are
turning to historical data for insights with mounting selling
pressure and some investors being concerned about potential
short-term losses. This historical analysis is crucial in
determining whether we’ve reached a market top or if this is just a
temporary pause before the trend resumes. Will The Depth Of This
Correction Depend On This? In a post on X, one analyst said the
depth of the current correction will largely depend on whether
Bitcoin is “parabolic” or not. Whenever an asset registers
“parabolic” prices, it means valuation has increased sharply, and,
at some level, analysts think it is unsustainable. In that case,
prices tend to cool off later, but after key resistance levels and
even all-time highs have been broken. If this is the case, then the
current cool-off could suggest the formation of a potential “first
cycle top” at the March 2024 all-time high of $73,800. Related
Reading: Bitcoin ETF Outflows Are Ramping Up Again, What Does This
Mean For BTC Price? This formation will be similar to those seen in
April 2013 and 2021. However, in another scenario, traders should
expect a different arrangement, assuming the recent price growth
wasn’t unsustainable or parabolic. Assuming this is the case,
Bitcoin will likely continue bleeding and revisit established
support levels. The analyst predicts a possible correction to as
low as the $53,600 support in the coming sessions. This
retracement, the analyst continues, will allow the formation of a
“smoother curve like 2016 – 2017.” The Influence Of Bitcoin Halving
Aside from this assessment, another analyst is roping in the
concept of the Bitcoin pre-halving cycle. Usually, and looking at
historical formations, prices tend to collapse leading up to the
halving event, which is set for the third week of
April. In a post on X, the analyst said the
current rejection and the failure of bulls to push prices higher
suggest that the coin might consolidate between $60,000 and $70,000
in the coming weeks. Bitcoin continues under pressure and will
likely register even more losses in the days ahead. Based on the
daily chart formation, BTC prices are trending below the middle BB.
Notably, it is finding strong rejection from the $71,700 zone.
Related Reading: Canine Comeback? KNINE Brushes Off 50% Loss, Gets
Listed On Major Exchange Even though the uptrend remains, buyers
will only be in control should prices rise, reversing current
losses, preferably with increasing participation levels. Feature
image from DALLE, chart from TradingView
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