Bitcoin experienced a significant 6.0% drop in the past 24 hours, sparking fear and uncertainty among traders. However, this dip has also led to discussions about a potential relief rally on the horizon. 

After #Bitcoin‘s -6.0% drop in the past 24 hours, we’re starting to see an appealing level of #FUD that could be indicating a relief rally is around the corner. Joined by our friend, @hashoshi4, enjoy our market update as we turn the page to May! https://t.co/9VxZ8QJxiI pic.twitter.com/dm2W3bqV4k

— Santiment (@santimentfeed) May 1, 2024

Both Bitcoin and Ethereum have been the focal points of heightened discussion today, with BTC dropping to as low as $59.5K and ETH to $2.9K.

Despite the initial panic, some traders are viewing this as a prime opportunity to buy the dip, leading to a mild relief bounce in the market.

#Bitcoin and #Ethereum are seeing significantly higher discussion compared to other assets today. Traders have showed a sizable amount of fear with $BTC dropping as low as $59.5K and $ETH as low as $2.9K today. Counter traders have used these signs as a great #buythedip… pic.twitter.com/6pRAFHidcD

— Santiment (@santimentfeed) April 30, 2024

Analyst Ali Martinez shed light on historical patterns surrounding Bitcoin’s halving events. In both 2016 and 2020, Bitcoin consolidated for extended periods—189 days and 87 days, respectively—before the onset of a new bull run. 

Around the last two #halving events, #Bitcoin consolidated for an extended period — 189 days in 2016 and 87 days in 2020 — before the bull run resumed.

So far, $BTC has consolidated for 60 days! pic.twitter.com/qosvd2z4JN

— Ali (@ali_charts) April 30, 2024

Currently, BTC has been in a consolidation phase for 61 days, suggesting that a potential breakout may be on the horizon. Martinez also highlighted the significance of Bitcoin testing the 100-day EMA (Exponential Moving Average) while the RSI (Relative Strength Index) dipped to 36. A similar scenario in late January led to a major price rebound, indicating that history may repeat itself.

However, caution is advised, as a sustained close below the 100-day EMA could signal a further drop toward the 200-day EMA. Additionally, the market faces significant liquidation risks, with $67.22 million set to be liquidated on Binance alone if Bitcoin rebounds to $62,600.

$67.22 million will be liquidated on #Binance alone if #Bitcoin rebounds to $62,600! pic.twitter.com/jG3w59zDm3

— Ali (@ali_charts) April 30, 2024

Bitcoin ETF Net Inflow Continues In Negative Zone 

Bitcoin ETF net inflow data for April 30, 2024, reflects a continued trend of negative inflows for the fifth consecutive trading day. Most Bitcoin ETFs experienced outflows or zero flows, with notable instances such as BlackRock iShares Bitcoin Trust experiencing zero flows for five consecutive trading days. 

$BTC #ETF Net Inflow Apr 30, 2024: -$162M!

• The net inflow has been negative for 5 consecutive trading days for the 3rd time.

• Almost all 10 #BitcoinETFs experienced either outflows or zero flows, particularly #BlackRock iShares Bitcoin Trust $IBIT, which saw zero flow… pic.twitter.com/uK9GLC6RnP

— Spot On Chain (@spotonchain) May 1, 2024

The single-day outflow of Grayscale Bitcoin Trust also increased significantly, further adding to market uncertainty. 

Overall, while the market remains turbulent, there are indications of potential relief and recovery on the horizon, providing cautious optimism for investors and traders alike.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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Image Source: bhubeth/123RF // Image Effects by Colorcinch

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Filed under: Bitcoin - @ May 2, 2024 4:04 am