The Bitcoin market has been grappling with increased selling pressure over the past week, with the price of the leading cryptocurrency dipping below the crucial $60,000 support level. However, a recent relief bounce to $64,182 on April 18 has sparked hopes of a potential recovery among investors.

TLDR

Bitcoin price has seen a brief relief bounce to $64,182 on April 18, following a week of selling pressure that pushed BTC below $60,000.
Short-term holders’ (STHs) realized price, currently around $60,000, has historically acted as support during bull markets and may indicate a potential bottom for the current correction.
Crypto expert Marcel Knobloch, also known as Collin Brown, predicts Bitcoin could reach $455,000 if it follows the pattern of the previous halving, which saw a 700% increase in price.
A large Bitcoin transaction of 16,276 BTC (worth around $1 billion) was sent to Binance, causing concern among investors about potential selling pressure.
Binance later clarified that the transaction was part of its Secure Asset Fund for Users (SAFU) fund conversion from BTC to USDC to maintain a stable $1 billion balance and safeguard user funds.

According to on-chain analytics platform CryptoQuant, the realized price for short-term holders (STHs) – entities that have held Bitcoin for 155 days or less – is currently around $60,000. This level has historically acted as support during bull markets, suggesting that the current correction may be nearing its bottom.

Bitcoin selling pressure from traders may be declining as unrealized profit margins are basically zero now.

Traders’ realized price (pink line) has acted as support for prices during a bull market and it’s now at ~$60K. pic.twitter.com/rQbxKQ3W1T

— Julio Moreno (@jjcmoreno) April 18, 2024

Julio Moreno, head of research at CryptoQuant, noted that selling pressure from traders might be declining as their unrealized profit margins have essentially reached zero. This indicates that STHs have effectively run out of profitable trades, and further selling may subside to avoid realizing losses.

As the Bitcoin market navigates this period of uncertainty, crypto expert Marcel Knobloch, also known as Collin Brown, has made a bold prediction regarding the cryptocurrency’s future price trajectory. Knobloch believes that Bitcoin could potentially reach $455,000 if it follows the pattern observed during the previous halving event.

In just forty-eight hours, #Bitcoin‘s fourth mining reward halving will occur. This quadrennial occurrence will slash the per block emission of BTC to 3.125 BTC from the current 6.25 #BTC. After the last halving, Bitcoin prices surged 700%, which would now bring $455,000! ???????????? pic.twitter.com/XwAXUAKtta

— Marcel Knobloch aka Collin Brown (@CollinBrownXRP) April 17, 2024

The upcoming Bitcoin halving, set to occur within the next 48 hours, will reduce the block reward from 6.25 BTC to 3.125 BTC. Historically, halving events have been followed by significant price increases. After the last halving, Bitcoin experienced a 700% surge, reaching its previous all-time high of $69,000 during the 2021 bull cycle.

Knobloch’s prediction is based on the assumption that Bitcoin will mirror this pattern, leading to a substantial rally post-halving. While the forecast may seem ambitious, it is not entirely unfounded, given the historical precedent of Bitcoin’s price action following halving events.

However, the road to recovery may not be smooth, as evidenced by a recent large Bitcoin transaction that sent shockwaves through the crypto community.

Whale tracker Whale Alert reported a transfer of 16,276 BTC, worth approximately $1 billion, to the Binance exchange. Such large transfers to centralized exchanges often raise concerns about potential selling pressure.

In response to the speculation surrounding the transaction, Binance clarified that the funds were part of its Secure Asset Fund for Users (SAFU) fund conversion

The exchange is converting the SAFU fund from BTC to the stablecoin USDC to maintain a stable balance of $1 billion and safeguard user funds against price fluctuations.

Binance’s decision to use USDC for its SAFU fund is aimed at enhancing the reliability and transparency of the fund, ensuring that it remains stable at $1 billion.

The exchange emphasized that the use of a trusted, audited, and transparent stablecoin further bolsters the fund’s integrity.

The post Bitcoin Price Bounces at Key Support Level: Expert Predicts $455,000 Price Target Based on Historical Patterns appeared first on Blockonomi.

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Filed under: Bitcoin - @ April 18, 2024 6:22 pm