After the lows of $65,500 earlier this week, the Bitcoin (BTC) price has bounced back once again gaining 3% in the last 24 hours and attempting a surge past $67,000 once again. However, some market analysts believe that the correction might not be over and we might see a BTC price dip under $60,000, before resuming the upward journey.
Where’s Bitcoin Price Going Next?
Popular crypto analyst IncomeSharks reveals that the Bitcoin price might navigate through the smaller downward channel while resuming the upward broader channel as shown in the below image. This means that the BTC price can take a dip under $60,000, before resuming the rally to $100,000.
According to Income Sharks, there’s a notable observation when you draw the channel from the low and high—it almost perfectly hits $100,000. The analyst also notes that selling serves as a bullish catalyst, especially for those seasoned in the market who understand its tendency to thrive on fear and doubt. The strategy seems to involve convincing everyone that the halving was ineffective, only to drive a surge afterward.
They advocate for allowing the government to sell, for FUD (Fear, Uncertainty, Doubt) to seep in, and for the bears to take a brief victory lap. They believe that the more it pulls back, the more aggressive the rebound will be post-halving.
On the other hand, the Bitcoin funding rates have also surged to a new all-time high at levels last seen back in April 2021. Last time when the Bitcoin funding rates were this high, the BTC price tanked by 50%. On the other hand, the Bitcoin ETF inflows have also subsided this week standing at an average of $100 million per day.
Bitcoin funding rates STILL near ATH (despite recent dip).
The last time funding rates were this high was in April 2021.
After this happened, Bitcoin collapse from above $60,000 to below $30,000 just three months later. pic.twitter.com/6R1uBFiTxu
— Altcoin Daily (@AltcoinDailyio) April 4, 2024
Crown Sentiment and BTC Price Action
According to on-chain data provider Santiment, there has been fluctuation in the crowd’s sentiment toward Bitcoin and crypto markets since the significant correction three weeks ago. Despite the Bitcoin halving being just two weeks away, trader sentiment indicates feelings of FUD and bearishness.
Despite prices temporarily bouncing back to $69K on Thursday, it’s suggested that bulls should hope for the prevailing consensus to remain negative. Historically, markets tend to move counter to the expectations of the crowd. Therefore, some of the most opportune times to buy occur during periods when the majority doubts the possibility of a rally beginning or continuing.
The cryptocurrency market is eagerly awaiting the next Bitcoin halving event that is just a few days from here onwards. This would create a major supply shock in the market which could be bullish for BTC investors in the long term.
The post Bitcoin (BTC) Price Correction Below $60,000 Possible Before Halving Rally Resumes appeared first on CoinGape.
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