3min read
Published on: Apr 18, 2024
#Crypto 360
It’s just a matter of few days before the highly anticipated Bitcoin Halving, estimated to take place this Saturday.
Recommended Read: Bitcoin Halving: A Technical Approach
Over the last month, Bitcoin has experienced two declines of approximately 18% ahead of the halving event.
In mid-March, BTC declined 18% before bouncing back to $70,000, and now in mid-April, BTC has pulled back 18% again.
However, not to worry, this type of pullback is common leading up to a halving event.
In 2016, the pre-halving pullback was 38%, compared to 19% in 2020.
Additionally, BlackRock had already mentioned Bitcoin may see a “healthy pullback” during this period.
It is important to note that this pre-halving pullback represents the final buying opportunity for investors before the supply is cut. But this time, past theories and data may be less reliable indicators due to current global economic conditions, political instability, geopolitical uncertainties, as well as Institutional inflows into spot Bitcoin ETFs.
Inflows to spot Bitcoin ETFs have slowed significantly over the past month, contributing to Bitcoin's recent price decline.
Meanwhile, Hong Kong approving spot ETFs for Bitcoin and Ethereum is a positive sign, though their trading volumes should not be directly compared to the massive US market, but it signals increasing investment demand and wider mainstream adoption of cryptocurrencies.
With the upcoming halving, Bitcoin's supply will be cut in half. If demand remains steady or increases, this supply shock will directly influence and potentially propel Bitcoin's price higher.
Another key factor is the uncertain geopolitical situation, which significantly influences institutional investors' decisions on whether to shift holdings into gold.
Typically when gold prices rise, so does Bitcoin. However, at current, Bitcoin's price has dropped while gold continues climbing, indicating a potential change in institutional positioning.
But as of today, the situation does not seem critical, and markets appear to be refocused on the Bitcoin halving instead.
In terms of technical analysis:
Regarding futures, with exchange-triggered liquidations, if Bitcoin's price falls to $57,500, exchanges could potentially gain over $1.75 billion total.
In the short-term, based on the current price pattern and technical analysis, Bitcoin may pullback towards $59,347 most likely. If that level fails to hold, the next target would be $51,018.
This article is for informational purposes only and not intended as investment or financial advice. It contains opinions and speculations that are subject to change without notice.
The author and publisher disclaim any liability for decisions made based on the content of this article. Readers are advised to conduct their own research and consult a financial advisor before making investment decisions.
Join the community to receive exclusive market analysis and updates!
Ignite your financial journey with BitDelta's diverse asset classes.
