In the fast-paced realm of cryptocurrency trading, Bitcoin remains at the forefront, every action observed and examined passionately. The current excitement about Bitcoin’s future path has triggered discussions among traders, enthusiasts, and experts, questioning if the original digital currency will reach new all-time highs before the upcoming Bitcoin halving. However, with the changing market landscape, it is becoming more clear that this journey could be filled with challenges and unknown future outcomes.

Bitcoin Price Double Downturn

Following the post-Easter market shake-off, Bitcoin experienced a notable setback in its aftermath. The cryptocurrency witnessed a significant drop of approximately 9% from $71,300 to $64,000, sending shockwaves within the crypto market. 

At the same time, recent market activity on Tuesday night brought an extra level of complication to Bitcoin’s journey. The digital currency experienced intense downward pressure, resulting in a 5.7% decline to around $65,700, concluding a week of trading within the $68,000 to $72,000 range. The upcoming halving event on April 21 is adding to the uncertainty about where Bitcoin’s price is heading.

Bitcoin Price Market Performance

Bitcoin remains the top digital currency in the market, with a price of $66,066.43 and a market capitalization of $1.3 trillion. While it saw a 0.67% decrease recently, this token showed significant expansion by increasing 134.76% in the past year. The limited supply of Bitcoin, along with a massive trading volume of $45.47 billion and 19.67 million Bitcoins in circulation, adds to its value proposition. Following the $1.39 trillion fully diluted market capitalization, the growth rate is impressive. Bitcoin has earned a strong 4.5-star rating from institutions as it continues to increase steadily, positioning itself as the leader in new digital currencies.

BTC price plunged because of selling pressure. Long liquidations were particularly noticeable during a period of increased volatility. Within 24 hours on April 2, positions worth more than $115 million in long assets were closed. Particularly, Bitcoin’s long liquidations increased to more than $21 million. These types of liquidations once done without substantial buying pressure, may lower BTC price. 

Bitcoin’s Technical Indicators Signal Caution

Important signals, like the Relative Strength Index (RSI), portrayed a warning message, reflecting similar levels seen during January’s volatile period when Bitcoin was valued at around $41,000. Investors are trading cautiously due to the combination of market dynamics and regulatory developments, as well as the downward trend affecting Bitcoin’s trajectory.

BTC’s RSI falling below 50 to 38, along with signs of weakening momentum, implies a current inclination toward the downside. If Bitcoin breaks below the important 200-day Exponential Moving Average (EMA) support at $64,468, prices may continue to drop, possibly reaching the $60,800 mark.

Breaking the $69,000 Resistance Level

A popular cryptocurrency trader and analyst Micheal Van de Poppe, shares insights on the current price changes of Bitcoin, highlighting the loss of an important zone. He questions whether Bitcoin can reach an all-time high again without breaking the $69,000 resistance level.

Although he is cautious about the short-term outlook for Bitcoin, he is positive about the broader cryptocurrency market, anticipating a rebound for altcoins and an increase in momentum. Van de Poppe points out that the range of $56,000 to $60,000 is crucial for the future movement of Bitcoin, as it could act as either support or resistance. This suggests he believes there is potential importance in this price range for impacting Bitcoin’s direction.

Crucial area lost for #Bitcoin.

We’ll not see a new ATH pre-halving unless $69K breaks.

What I do expect is a period of consolidation, through which altcoins will wake up after the end of this correction.

Area of interest for Bitcoin?

$56-60K. pic.twitter.com/CRIYtWSeY8

— Michaël van de Poppe (@CryptoMichNL) April 2, 2024

Rekt Capital, another analyst echoed this by asserting that the ongoing price movement is a part of a retracement before the halving. He reported that Bitcoin saw a 38% drop in 2016 and a 20% decrease in 2020 during the halving cycles.

Ali Martinez highlighted the Bitcoin four-hour chart’s reliance on the 200 EMA for strong support. This support has been crucial since the beginning of February, stopping BTC prices from dropping even more.

Due to this, the analyst is closely monitoring this level since if it remains strong, it ensures a recovery, but if it fails as it did in mid-January, it may result in further declines for $BTC.

Glimmers of Hope

Recent advancements in the cryptocurrency market provide optimism for supporters of Bitcoin amidst a climate of uncertainty. Weekly ETF inflows indicate a positive change in sentiment towards Bitcoin, suggesting renewed optimism. The movement of 60 million USDT from Tether to Kraken Exchange increases liquidity and accessibility within the ecosystem. Their contribution to BTCPay Server backs infrastructure for Bitcoin transactions. 

LATEST: Weekly ETF Flows Are Positive Again!

After last week’s outflows this is very promising to see.

Don’t be fooled by the little shakeout, the bigger picture remains the same.

6-figure #Bitcoin is coming soon!!! pic.twitter.com/CoQKTMf7jb

— Kyle Chassé (@kyle_chasse) April 2, 2024

There are also speculations about UBS considering the addition of Bitcoin ETFs, signaling the acceptance of cryptocurrencies by institutions. The growing popularity of cryptocurrency indicates a promising future for Bitcoin. Rising institutional interest and infrastructure support suggest ongoing expansion. Bitcoin’s future appears optimistic despite facing obstacles.

Conclusion

As Bitcoin navigates these market challenges, investors remain vigilant, watching key indicators and emerging trends. The journey towards a new ATH before the halving event may be fraught with hurdles, yet with adaptability, foresight, and strategic decision-making, stakeholders stand poised to seize opportunities and navigate the ever-evolving landscape of cryptocurrency trading.

The post Bitcoin Price: Why BTC Price May Not Hit New ATH Before Halving? appeared first on CoinGape.

---

Filed under: News - @ January 1, 1970 12:00 am