Bitrabo Editorial
Bitcoin is facing significant downward pressure, moving lower from the critical resistance level of $66,000. There is a possibility of BTC dropping below the psychological barrier at $60,000 towards the $56,500 mark or the lowest point since May 2024, but some analysts remain optimistic.
Normal Market Behavior After Bitcoin Halving: Analysts’ Perspective
One analyst shared on X that the current market correction is a regular part of Bitcoin’s market cycle. Traders are advised to continue buying during dips, with a target set at the all-time highs expected in the first quarter of 2024, anticipating new price levels.
The analyst emphasized that the current Bitcoin price movement observed in the daily chart is consistent with historical patterns, particularly the period following the reduction in miner rewards due to the halving event.
Bitcoin is currently in the fifth epoch post-Halving on April 20, significantly affecting miner earnings from 6.25 BTC to 3.125 BTC.
Despite a 12% correction from the all-time high of $73,800, BTC is following a familiar trend, with prices typically rallying before Halving.
Between October 2023 and March 2024, prices surged from $25,000 to reach new peaks. This spike in demand was partly driven by expectations of SEC approving a spot BTC exchange-traded fund, which commenced trading in January 2024.
Bitcoin Enters the “Boring Zone” Amidst Whales’ Selling Activity
Following the pre-halving surge, BTC experienced a sharp drop of 25% to a low of $56,500 in May.
After this phase, prices often remain stable with minimal fluctuations before a final decline to shake out traders.
Before an upward move into the “Banana Zone,” BTC typically goes through an extended consolidation phase with stagnant prices. The current price range of $56,500 to $73,800 questions whether BTC is in the “Boring Zone.”
Ki Young Ju, the founder of CryptoQuant, indicated that whales have been offloading their BTC holdings for the past two weeks.
Based on on-chain data, these long-term holders have sold approximately $1.2 billion worth of BTC, likely through brokers, exerting downward pressure on prices. The rising outflows from spot Bitcoin ETFs have further slowed down the uptrend.