Bitcoin Price Dips Below $60,000 Before Halving, Traders Remain Optimistic
Just days before the highly anticipated Bitcoin halving, the price of Bitcoin briefly fell below $60,000. However, many traders are maintaining a positive long-term outlook for Bitcoin based on historical chart patterns and institutional inflows.
Bitcoin is currently in what analysts refer to as the “pre-halving danger zone.” Despite the recent price correction, popular crypto analyst Moustache noted that Bitcoin has reclaimed a key moving average indicator. This indicator has historically signaled the beginning of bull runs in previous market cycles.
According to Rekt Capital, another well-known crypto analyst, Bitcoin has been in the danger zone since March 14. However, there are signs that Bitcoin may already be entering a reaccumulation phase.
Following the recent correction, key technical indicators have been reset, suggesting that Bitcoin is no longer overbought. The daily chart shows a drop from 58 to 41 on April 8.
The recent 7% drop in Bitcoin price over the past week could be attributed to geopolitical tensions between Iran and Israel, according to John Patrick Mullin, CEO and founder of Mantra. However, Mullin believes that this drawdown is a healthy correction and that the overall outlook for the next 18 months remains bullish.
Bitcoin traders are also optimistic due to continued inflows from 10 spot Bitcoin exchange-traded funds (ETFs) in the United States. Additionally, the recent approval of spot Bitcoin ETFs in Hong Kong is expected to further drive Bitcoin’s price rally.
Since their launch, Bitcoin ETFs have seen over $12.5 billion in net inflows, accumulating a total of 838,000 BTC worth $53.7 billion in holdings, according to Dune.
While the post-halving period typically experiences short-term price stagnation, the approval of Bitcoin ETFs could lead to a different outcome this cycle, according to Ivo Georgiev, CEO of Ambire.
Mantra’s CEO, Mullin, believes that the listing of the first batch of Bitcoin ETFs in Hong Kong will also contribute to Bitcoin’s price rally.
It’s important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research before making any investment or trading decisions.