Bitcoin Price: Should You Buy The Dip Or Prepare For $56,000 Pre BTC Halving? - July 2024

On Mondays, Bitcoin‘s price bounced back slightly above its weekend lows, reaching a peak of $66,830. The primary reason for this increase was the recent approval of new Bitcoin spot ETFs in Hong Kong.

Approving the ETF’s launch in Asia’s major financial center has signaled to other regions that they too should seriously consider this path, potentially leading to an enormous increase in Bitcoin demand.

Despite the initial influence of Hong Kong’s listed Bitcoin ETFs, Bitcoin’s downturn continued in the early hours of Asian business on Tuesday. The leading cryptocurrency reversed its weekend recovery, dipping below the $61,650 mark amidst thin market liquidity.

In the past 24 hours, Bitcoin’s price has dropped by 5.5%, reaching $62,615. At the same time, trading volume for the cryptocurrency has grown by 5.5%, amounting to $45 billion. The market capitalization of Bitcoin follows suit with a decrease of 5.24%, now standing at $1.2 trillion – reflecting the current market pressure according to CoinMarketCap.

Will Bitcoin Price Plunge To $56,000 Pre-Halving

According to various blockchain calculators like CoinGecko, the Bitcoin halving is expected to occur around April 2021. This event will result in the production of new Bitcoins being reduced by half. Since there can only ever be a total of 21 million Bitcoins in existence, it’s essential that we maintain this scarcity to prevent inflation and preserve the value of each coin.

Cutting in half the number of new coins released keeps the coin production ongoing, yet makes the coins more valuable and fewer in supply by decreasing the amount of coins given to miners for verifying transactions and maintaining the network’s security.

Bitcoins are designed to cut in half their reward for miners every 210,000 blocks, approximately every four years. Currently, miners receive 50 Bitcoins as a reward; however, this reward will soon decrease to 3.125 Bitcoins.

During a Bitcoin halving event, the market takes notice beyond just managing inflation. Historically, Bitcoin’s price experiences an initial surge following the halving. However, the significant price increase occurs several months later due to reduced supply and heightened investor interest – both from retail and institutional buyers.

The upcoming halving is predicted to be extraordinary, as demand could significantly increase due to the US ETF’s approval and Hong Kong’s recent approvals on Monday.

If investors take a long-term perspective on the market instead of focusing solely on the halving event, they can consider purchasing during this dip.

For individuals focusing on Bitcoin’s short-term price fluctuations, it is essential to monitor the market closely and take into account the ongoing geopolitical conflicts in the Middle East. These tensions caused Bitcoin to dip back down towards $60,000 last weekend.

Bitcoin Price Analysis As $61,000 Support Steadies

The level of support for Bitcoin’s price identified on Monday was upheld during Tuesday’s intraday trading.

Bitcoins are trying to bounce back from a slump indicated by the gray zone, but investors planning to buy should wait until the congestion of sellers caused by Monday’s opening price at $63,495 and the upward trendline is cleared up. Delaying entry could help prevent unexpected drops, potentially leading to greater losses.

Bitcoin Price: Should You Buy The Dip Or Prepare For $56,000 Pre BTC Halving?

On the four-hour chart, a second death cross occurs when the 50-day EMA (represented by the red line) falls beneath the 200-day EMA (purple line). This event suggests that sellers are currently in control.

If Bitcoin manages to maintain prices above the $64,000 barrier, this could be a sign of strong bullish momentum. This strength might be reinforced by the excitement surrounding the upcoming halving event later in the week, potentially pushing the price up towards $70,000.

According to Santiment’s analysis of blockchain information, even though Bitcoin’s value is fluctuating, major investors (whales) aren’t rushing to sell their Bitcoins right now. Instead, significant Bitcoin holders are keeping their investments.

As the April 19th #bitcoin halving approaches and uncertainly, or FUD, swirls among traders, here’s a look at the behavior of these significant whale communities since March 1st:

BTC

Despite the decrease in Bitcoin ETF trading volume over the past few weeks, which is a potential cause for concern among investors, it’s important to note that the significant increase in ETF volumes during Q1 played a major role in driving up the price of Bitcoin to a new record high in March.

According to information provided by Wu Blockchain at SoSoValue, if the volume of Bitcoin flowing out of the market continues to rise, then the price could enter a risky phase with potential losses taking the lead. It may take several months following the halving before the market recovers and regains momentum.

Yesterday, SoSoValue reported that Bitcoin spot ETFs experienced a total net withdrawal of approximately $36.67 million. Notably, Grayscale’s GBTC ETF saw a significant daily outflow of around $110 million. The historical net outflow for GBTC now reaches an impressive figure of about $16.38 billion.
— Wu Blockchain (@WuBlockchain) April 16, 2024

This week, keep an eye on two significant levels for Bitcoin’s price: support at $60,000 and resistance at $64,000. Should the price breach either of these thresholds, it could lead to a drop to $56,000 or a close above $70,000 by week’s end.

2024-04-16 16:51

Will Bitcoin Price Plunge To $56,000 Pre-Halving

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