Bitcoin Price: The largest cryptocurrency market cap, Bitcoin, has been trading sideways for over a month evidenced by the two converging trendlines. The daily chart shows this consolidation as the formation of a pennant pattern— a chart setup that leads to temporary correction to regain strength for the next leap. Should you enter this dip?
Also Read: Costa Rica Resumes Debate On Allowing Bitcoin As Money For Daily Use
Will BTC Price Hit New Height Before Halving?
The leading digital asset Bitcoin entered the current consolidation trend in mid-March as the price reverted from the new high of $73800. While the sideways action within two converging trend lines indicated the formation pennant pattern for BTC, a majority of major coins witnessed a notable correction trend in this period.
Several analysts also reveal this pullback as the pre-halving consolidation which remover weak hand from the market while smart money remains bullish
According to IntoTheBlock, Bitcoin whales with 1k BTC or more have ramped up their holdings by 220k BTC since the year’s start, notably after the launch of Bitcoin spot ETFs. This $14.2B increase, with 210k BTC from ETF inflows, signifies a strong institutional endorsement for Bitcoin.
The amount of Bitcoin held by addresses with 1k $BTC or more skyrocketed since the launch of the ETFs!
Since the start of the year, the balance of whales has climbed by 220k BTC (~$14.2B), with 210k of this Bitcoin coming from net inflows into the ETFs. pic.twitter.com/RSEr4DYD21
— IntoTheBlock (@intotheblock) April 6, 2024
Also Read: MicroStrategy (MSTR) Share Tanks 25%, Recovery Soon after Bitcoin Halving?
Will Bitcoin Price Surpass $80000?
Analyzing the historical data from Coinglass for Bitcoin’s monthly returns, April has traditionally been a bullish month for Bitcoin. Despite the current negative return of -4.21% in April 2024, a closer examination reveals a pattern where this month often heralds a period of positive momentum.
Notable gains include April 2013’s extraordinary +50.01% and April 2021’s strong +29.84% increase. Historically, the average return for this month stands at a substantial +13.86%, while the median return of +5.04% indicates this month has tended to yield a positive outcome for the cryptocurrency.
Thus, the Bitcoin price holds a higher potential for an upside triangle breakout which will signal the continuation of prevailing trendline. As per the pennant formation, the post-breakout rally could drive the coin value to $87000.
Technical Indicator
- BB indicator: The squeezed range of Bollinger band indicators hints at the increasing volatility in this asset.
- Relative Strength Index: The daily RSI above 50% reflects a positive sentiment that remains intact among market participants.
The post Will Bitcoin Price Extend Its Recovery in April? Historical Insights Say Yes appeared first on CoinGape.
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