Bitcoin is under heavy selling pressure on the upside, tracking down from the all-important resistance level of $66,000. Although BTC may crash below the psychological line at $60,000 to $56,500 or the May 2024 lows, some analysts are happy.
Bitcoin Drop Is Normal Post-Halving: Analyst
It is based on X, a single analyst he explained that the current adjustment is a normal part of its market cycle. If anything, savvy traders should continue to accumulate on dips, target all-time highs for Q1 2024, and expect prices to charge to new heights.
Looking at the formation on the daily chart, the analyst insisted that Bitcoin’s current price action is in line with historical trends, especially in the weeks after the network halved miners’ rewards.
Bitcoin is now in its fifth period after Halving on April 20, cutting miners’ rewards from 6.25 BTC to 3.125 BTC, which has a huge impact on miners’ income.
As things stand, BTC finds itself in a normal pattern, even a 12% correction from the all-time high at $73,800. According to the analyst, BTC prices tend to converge before the Half.
From October 2023 to March 2024, prices increase, rising from the bottom to $25,000 to record all-time prices. However, the increase in demand was also accelerated by the expectation that the United States Securities and Exchange Commission (SEC) would approve a BTC exchange-traded fund (ETF). The product began trading in January 2024.
BTC In “Boring Place” Like Dumping Whales
The pre-half meeting was followed by a sharp adjustment after the event, which saw BTC drop 25% to $56,500 in May.
Once this phase is done, prices tend to move sideways with little volatility before finally reducing to shake up traders.
Before prices rise to the top of the “Banana Zone,” prices enter another consolidation phase marked by stagnant prices. It remains to be seen if BTC is a “Boring Zone” due to the current decline within the $56,500 and $73,800 area.
Ki Young Ju, founder of CryptoQuant, a blockchain analytics platform, said whales have been dumping their BTC for the past two weeks.
According to on-chain data, these long-term holders sold about $1.2 billion of the coin, likely through traders, suppressing prices. Increased outflows from Bitcoin ETFs also moderated the rise.
Featured image from Canva, chart from TradingView
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