After a brief jump from weekend lows, Bitcoin price topped $66,830 on Monday. This move was mainly attributed to the new spot ETF approvals in Hong Kong.
Greenlighting the ETF in Asia’s financial hub has been viewed as a confirmation for other jurisdictions to deliberately consider a similar direction — eventually driving demand for BTC to unprecedented levels.
However, the impact of Hong Kong’s listed ETFs did not last long, with Bitcoin resuming its weekend losing streak in early Asia business hours on Tuesday. The bellwether cryptocurrency clawed back the accrued gains, sweeping through non-existent liquidity at $61,650.
A 5.5% correction in the last 24 hours places Bitcoin price at $62,615. The coin boasts a 5.5% increase in trading volume to $45 billion while its market cap at $1.2 trillion mirrors the selling pressure with a 5.24% dip, CoinMarketCap data shows.
Will Bitcoin Price Plunge To $56,000 Pre-Halving
Bitcoin halving will take place around April 20 according to most blockchain calculators, including CoinGecko. As a rule, there will only be 21 million BTC in existence and in a bid to control inflation, upholding asset scarcity is paramount.
Halving ensures the continued release of new coins while increasing scarcity by reducing the number of coins miners receive as a reward for processing transactions and securing the network.
Bitcoin has been programmed to halve every 210,000 blocks or roughly four years. The miner rewards which started at 50 BTC will reduce to only 3.125 later this week.
In addition to controlling inflation, halving is regarded as a market mover. Bitcoin price tends to rally immediately after halving but the most important is the bull run that follows several months later due to the supply crunch and increasing demand for BTC among investors — retail and institutional.
This halving is expected to be like no other with demand likely to surge exponentially due to the ETF in the US and Monday’s approvals in Hong Kong.
Therefore, if investors have a long-term overview of the market and not just the halving day, buying the current dip is still viable.
However, those interested in short-term price movement must study the market and consider the current geopolitical tensions in West Asia, which saw Bitcoin price retest $60,000 last weekend.
Bitcoin Price Analysis As $61,000 Support Steadies
The support highlighted in the Bitcoin price today on Monday, has been respected by the intraday price action on Tuesday.
Bitcoin is attempting a rebound from the grey marked area but traders eyeing long positions must wait until the seller congestion due to Monday’s open at $63,495 and the ascending trendline is resolved to avoid sudden pullbacks, which may result in more losses.
A second death cross on the four-hour chart implies that sellers currently have the upper hand. This pattern came into the picture as the 50-day Exponential Moving Average (EMA) (line in red) flipped below the 200-day EMA (line in purple).
A sustained break above the $64,000 resistance level could affirm a steady bullish grip which may tap into the halving buzz later in the week to close the gap towards $70,000.
Blockchain data by Santiment reveals that despite the volatility, whales are not concerned about selling BTC at the moment, with key wallet cohorts holding onto their stakes.
“With #FUD circulating among traders as markets close in on the April 19th #halving, this is how the following notable whale groups have behaved since March 1st:
- 100-1K $BTC wallets: 43,489 coins ($2.75B USD) accumulated
- 1K-10K $BTC wallets: 80,544 coins ($5.10B USD) accumulated
- 10K-100K $BTC wallets: 91,732 coins ($5.80B USD) accumulated.”
Nonetheless, dwindling Bitcoin ETF volumes in recent weeks should concern investors. Soaring ETF volume in Q1 drove BTC price to a new all-time in March.
If net outflow volume increases based on data from SoSoValue shared by reporter Wu Blockchain, Bitcoin price may be heading into a precarious period with losses likely to dominate before the market regains momentum months after the halving.
According to SoSoValue, yesterday's total net outflows of Bitcoin spot ETFs amounted to $36.67 million. The Grayscale ETF GBTC had a net outflow of $110 million in a single day, with GBTC's historical net outflow now standing at $16.38 billion. The Bitcoin spot ETF with the… pic.twitter.com/92c3lbmn7W
— Wu Blockchain (@WuBlockchain) April 16, 2024
The key levels to watch this week include support at $60,000 and resistance at $64,000. A break on either side of this range could determine whether Bitcoin price drops to $56,000 or closes the week above $70,000.
The post Bitcoin Price: Should You Buy The Dip Or Prepare For $56,000 Pre BTC Halving? appeared first on CoinGape.
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