- Too many times, the price of bitcoin has tested the critical support zone, which is between $60,364 and $62,412.
- Due to increased market risk brought on by geopolitical concerns, FOMO and the buzz around the BTC halving are still low.
- The Bernstein research states that following the halving of Bitcoin, ETF inflows will resume and the bull market in bitcoin will persist.
The price of Bitcoin (BTC) is declining even though the halving event is only three days away. Because of the depressing BTC price movement and the high level of market risk, traders are running for cover in more conventional assets.
Daily digest market movers: Bulls await hype involving Bitcoin halving
On Saturday, April 20, the much anticipated Bitcoin halving is scheduled to take place, reducing the block rewards for miners to 3.125 BTC. Historically, the first three post-halving eras saw price increases of roughly 1,000%, 200%, and 600%. The price of BTC has also seen notable swings in relation to the events. There isn’t a clear cause-and-effect correlation, but these isolated cuts have frequently come before significant increases in the value of Bitcoin.
Although volatility has frequently been used to characterize the pre-halving period, this time around there is more danger involved due to global unrest and the impact of exchange-traded funds (ETFs).
The price of Bitcoin has been in a slump recently. Experts at Bernstein have reported that this bullishness won’t return until exchange-traded fund (ETF) flows continue to halve. The number of data points that traders need to be concerned about has increased recently with the somewhat decline in ETF flows.
After the halving, according to Bernstein analysts, about 7% of the network hash rate is expected to shut down as less productive mining operations become unprofitable. Strong price action brought on by ETFs’ rising revenue will be the source of the decrease.
While the US ETF story is cooling down, things are different in Asia now that both Bitcoin and Ethereum ETFs have been approved by Hong Kong. According to digital asset innovation company 21Shares, there are rumors that Singapore, Japan, and South Korea would follow suit.
According to projections, ETFs might raise up to $25 billion in capital when they begin trading in Hong Kong on April 30.
Technical analysis: Bitcoin price must defend this level, lest a break below $60K is imminent
The demand zone between $60,364 and $62,412, a critical support, is being tested by the price of bitcoin. This level of retesting is already excessive. The Relative Strength Index (RSI) shows a declining momentum as it continues to go lower and tantalizes with more downside.
The momentum oscillator’s position below the 50 mean threshold indicates that while the price is continuously declining, average gains are less than average losses. The RSI’s lower highs, which indicate possible weakness in the price momentum, support this. Should this RSI trajectory continue, it would jeopardize the market’s main trend, which presents a lower buying opportunity.
The Awesome Oscillator (AO) and Moving Average Convergence Divergence (MACD) indicators are both in negative zone, suggesting that the price decline may continue. For the short term, traders may want to think about shorting Bitcoin, or at the very least, they should proceed with care if they are long.
A strong candlestick close below the demand zone’s midline, at $61,421, would indicate that the downturn is still ongoing. The price of Bitcoin may fall to $59,005, the intraday low of the March 5 trading session, with such a directional bias, before rising again.
On the other hand, the price of Bitcoin may rise if the $61,421 mark, which is essentially the demand zone, holds as support. Although a recovery over $65,276 would be ideal, after several unsuccessful corrections, there will probably be more bulls upon a significant candlestick close above $70,000 due to pessimism.
However, BTC bulls need to push the currency over $72,198, which is the middle of the supply zone spanning from $71,333 to $73,076, in order to confirm an advance. In order to reach the next all-time high above $74,000, more bulls would be encouraged to push Bitcoin past the $73,777 top.