With the highly anticipated Bitcoin (BTC) halving drawing near, analysts are raising concerns about possible price declines. According to CryptoQuant, a well-known cryptocurrency analysis firm, Bitcoin’s price may fall as low as $52,000 if specific resistance levels are surpassed.
According to CryptoQuant, there’s increasing hesitance among Bitcoin derivative traders, a trend more pronounced than in past bitcoin halving periods. Notably, this cautious behavior comes at a time when the market is witnessing a surge in institutional investment.
Derivatives traders are becoming more cautious, as shown by a decrease in the number of open derivative contracts and lower funding rates, according to the Bitcoin chart. Open interest represents the current count of active derivative contracts, whereas funding rates signify the difference in cost between holding long (buy) and short (sell) positions.
Key price levels to watch
Based on information from CryptoQuant, if Bitcoin’s price falls below the present level of $61,723, which is only slightly above the $60,000 mark, there is a possibility that the cryptocurrency may experience a decrease in value, potentially reaching around $52,000. This significant correction could indicate a brief period of bearishness in the Bitcoin market.
An institutional analysis pointed out that there is significant involvement of Bitcoin Spot ETFs by larger investors in the market. These investors may buy up Bitcoin sold during market downturns around the $60,000 price mark, thus stabilizing the price and mitigating a harsher price drop.
Institutional involvement and market dynamics
Over the past few months, there’s been a notable surge in institutional investors joining the cryptocurrency scene. Among them, Bitcoin Spot ETFs have become particularly influential and popular.
Institutional investors, known for their long-term investment strategy, tend to purchase Bitcoin when its price drops. They regard these dips as chances to buy instead of causes for alarm. Their involvement could significantly impact the market by maintaining the Bitcoin price near the $60,000 mark.
With Bitcoin’s halving approaching, there’s growing anticipation and apprehension in the cryptocurrency market about possible market fluctuations. A notice from CryptoQuant hinting at a potential decline to $52,000 is troubling news, but institutional investors’ significant involvement could help keep prices afloat.
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2024-04-18 15:18