As a seasoned crypto investor with several years of experience in this volatile market, I’ve learned to take the ups and downs in stride. The current selling pressure on Bitcoin, which has pushed it below $60,000, is not uncommon post-halving. Historically, BTC tends to undergo a correction after its rewards are halved, as miner revenue streams are significantly impacted.
As a crypto investor, I’m observing that Bitcoin is currently experiencing significant selling pressure and has dropped from the crucial resistance level of $66,000. The price may potentially slide further below the psychologically important line at $60,000, approaching the May 2024 lows around $56,500. However, there are some analysts who remain optimistic.
Bitcoin Drop Is Normal Post-Halving: Analyst
One analyst spoke about X to me, stating that the present correction is a typical occurrence within its market’s cyclical trends. In fact, knowledgeable traders should consider buying more during price drops and aim for record highs in Q1 2024. The market is expected to reach new heights in the future.
As a crypto investor closely observing the Bitcoin market, I strongly believe that recent price movements align with historical tendencies, particularly following the network’s halving of miner rewards. In the daily chart analysis, these patterns are evident and have proven to be significant indicators in the past.
As a crypto investor, I’m observing that we’ve entered the fifth stage following Bitcoin’s halving event on April 20, 2020. During this process, the miner rewards were reduced from 6.25 BTC to 3.125 BTC. Consequently, this substantial change has noticeably affected miner income streams.
Currently, Bitcoin follows a typical trend despite the recent 12% price drop from its record-high of $73,800. Analysts have observed that Bitcoin’s value often increases leading up to the Halving event.
As a researcher studying the Bitcoin market, I’ve observed an intriguing price trend from October 2023 to March 2024. Prices surged during this period, starting at a low of $25,000 and reaching unprecedented all-time highs. This price increase was not only due to organic market demand but also amplified by anticipation surrounding the potential approval of a Bitcoin spot exchange-traded fund (ETF) by the United States Securities and Exchange Commission (SEC). The product officially began trading in January 2024.
BTC In The “Boring Zone” As Whales Dump
After the pre-halving rally, Bitcoin experienced a significant decline, dropping approximately 25% to reach a low of $56,500 around May.
After completing this stage, prices typically exhibit limited fluctuation and trend horizontally, preparing for a more significant decline that may cause traders to exit the market.
In the “Banana Zone,” where prices typically surge, they may instead enter a prolonged period of price stability, with rates remaining relatively unchanged. It is uncertain if Bitcoin currently resides in the “Boring Zone” due to its current fluctuation between $56,500 and $73,800.
Ki Young Ju, the founder of CryptoQuant, a blockchain analysis firm, stated that large Bitcoin investors, referred to as “whales,” have been selling off their Bitcoins over the past two weeks.
Based on blockchain information, approximately $1.2 billion in coins have been offloaded by long-term holders, possibly through intermediaries, contributing to a price decrease. Additionally, inflows into Bitcoin exchange-traded funds (ETFs) have slowed down the upward trend.
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2024-06-20 01:11