Thursday, April 18, 2024

Bitcoin Correction Presents Potential Entry Point for Long-Term Investors.

The price of Bitcoin (BTC) experienced a slight dip, trading within the $62,000 range. This presented an opportunity for late bulls to purchase BTC at a 15% discount from its previous all-time high. The dump significantly impacted the market, leading to significant liquidations, while the countdown to the halving continues.

Is There Still Time to Buy Bitcoin at a Discount?

The price of Bitcoin plummeted to an all-time low of $62,410 on Tuesday, triggering a broader market downturn. The dip resulted in nearly $570 million worth of crypto liquidations, with $458 million coming from long positions and $111 million from short positions.

Around $136 million came from BTC longs, while approximately $45 million came from short positions. As the Bitcoin halving approaches, set to occur in just 30 days, anticipation builds.

Although the market downturn may seem severe, those with a positive outlook view it as a chance to make strategic purchases, considering it a necessary adjustment before the halving event. If history repeats itself, the Bitcoin halving has the potential to initiate the next bull market, just as it has done in previous cycles.

In other news, it has been reported that from March 10 to 18, MicroStrategy acquired 9,245 BTC tokens for its Bitcoin portfolio, totaling approximately $623 million. MicroStrategy acquired the tokens at an average price of $67,382. Through this substantial purchase, the business intelligence firm currently possesses 214,246 BTC valued at $13.6 billion, which was obtained for $7.53 billion. The average purchase price overall stands at $35,160.

Convertible notes and surplus cash significantly funded the acquisitions.

The Bitcoin price forecast leading up to the halving

The price of Bitcoin has shown a consistent upward trend before reaching its peak at $73,777. However, it has since experienced a pattern of declining highs and lows. This has resulted in a head-and-shoulders pattern. This technical formation suggests a potential bearish trend on the horizon.

Once the price falls below the neckline, the pattern is considered complete. We measure and project the distance between the neckline and the head from the expected breakout point in a downward direction to determine the target.

If this pattern plays out, there is a possibility that the Bitcoin price may experience a 12% drop to the weekly imbalance, known as the Fair Value Gap (FVG), which ranges from $52,985 to $59,005. This could present a favorable buying opportunity for investors who are comfortable taking risks. If the price falls and stays below its midline at $55,942, it would indicate that the downtrend is likely to continue.

The Relative Strength Index (RSI) indicates a decline in momentum, supporting this outlook. The recent loss of momentum in Bitcoin’s price has prompted ongoing profit-taking, causing the histogram bars of the Awesome Oscillator (AO) to move closer to the mean level.

Alternatively, if the optimistic scenario plays out, the bitcoin price may rise above the neckline. If the market continues to perform strongly, there is a possibility that BTC could surpass the $69,000 mark, which would challenge the bearish outlook.

If the resistance mentioned earlier turns into support, it would motivate the bulls to drive the price of Bitcoin to reclaim its peak of $73,777 or even higher. This would represent a significant increase of almost 13% compared to current levels.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
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