Thursday, May 23, 2024

Will Bitcoin Surge Again? Demand and Speculation Rise Before Halving.

With just a few days left until the halving, the price of bitcoin (BTC) is gradually declining. Large holders, however, have not been deterred by the dump and have stuck to their holdings despite a month of consistent dumps.

Market movers for the daily digest: heightened demand and speculation before the half of Bitcoin

After breaking below a rising trendline, the price of bitcoin keeps declining. It is situated in the lower half of a market range that is measured between $60,678 and $73,777, the corresponding peaks of buying and selling pressure.

Large holders, according to Santiment analysts, are not selling despite the continuous dump; the whales are still holding onto their coins. In particular, they decide to ignore any kind of false information.

It happens while the countdown to the halving, which is scheduled for April 20—just four days away—continues, with 500 blocks left. There is a reported surge in Google searches for “halving.”

The market usually experiences heightened expectation and speculation in the days preceding and on the day of the halving. Some cases of big price increases for BTC either prior to or following the halving can be attributed to speculation and increasing demand. Already, over the weekend, the implied volatility for the April expiry increased by 13%, from 62% to 75%. This points to impending short-term price volatility.

In a similar vein, analysts like @CryptoCapo_ advise traders to prepare for a sell-off that may see the price of the original cryptocurrency fall below $60,000, perhaps establishing a local bottom.

According to Santiment, traders are also having more discussions regarding “BTC and the viability of holding through a potential extended correction past the halving.”

With cryptocurrency industries like AI, gaming, DeFi, memecoins, and others drastically losing ground, popular interest in BTC and fiat liquidations will only increase under mounting FUD.

Technical analysts: the future of the price of bitcoin amid mounting confusion

After breaching below the rising trendline, the bearish momentum for the price of bitcoin keeps increasing. The Awesome Oscillator’s negative state further emphasises the declining momentum indicated by the nose-diving Relative Strength Index.

The price of Bitcoin is under pressure to decline as investors shift their money into conventional safe-haven assets like the US dollar, as indicated by the rising DXY indicator.

The price of Bitcoin might fall to $60,678, the bottom of the market range, as a result of increased selling pressure. In a worst-case scenario, the price of bitcoin might continue to decline and breach the psychological $60,000 mark, reaching as low as $59,005, which would represent a liquidity collection point for the intraday low of March 5.

However, if the bulls take advantage of the dip to buy, the subsequent purchasing pressure may drive the price of Bitcoin higher. More bulls would be attracted if the price moved above the rising trendline, which is essentially the 50% Fibonacci placeholder.

Before the price of bitcoin can retake the $73,777 ATH, there may be more buying pressure above the previously mentioned level, which could lay the stage for a rise above $69,000. In an extremely optimistic scenario, the price might surpass this range-high and reach a new high over the $74,000 and $75,000 barriers.

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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