The value of cryptocurrencies took a significant hit, causing most of the top 100 digital currencies to plummet in price. On Tuesday, Bitcoin, the foremost cryptocurrency, reached a low of $61,600.
Industry insiders believe that prices could rise again once we get closer to the much-awaited Bitcoin halving event.
Adrian Zduńczyk, an expert in cryptocurrency trading and analysis, shares essential information about market trends. He focuses on significant signals like bull market signs, Exchange-Traded Funds (ETFs), and the upcoming Halving process.
Mixed Signals For BTC
Based on Zduńczyk’s examination, the market is displaying optimistic indicators. The 200-week and 50-week moving averages are currently priced at around $33,700 and $39,900.
With an NUPL ratio of 0.55, we’re in a advantageous trading situation. Furthermore, the correlation between the Net Unrealized Profit-Loss ratio and the S&P 500 index remains strong at 0.71 over the past 7 weeks.
According to Zduńczyk’s analysis of Bitcoin’s daily fluctuations, the cryptocurrency is presently bouncing around between $59,000 and $74,000. The 200-day Simple Moving Average (SMA) sits at $46,600, while the cost to produce Bitcoins within that timeframe has reached $57,700.
In contrast, the analyst points out that the momentum of Bitcoin’s price in the intermediate term is weakening, and its 50-day Average True Range volatility has grown to $3270. This implies that Bitcoin’s upward trend may be waning or faltering within the medium-term perspective.
Bitcoin Aims For $86,500
Zduńczyk underlines the investors’ collective mood in the markets. According to the Fear & Greed Index, the reading is 65, signaling market participants’ widespread optimism or greed. The analyst points out that this particular stage of the market trend is marked by a strong sense of confidence.
Additionally, mining remains lucrative for miners if the price exceeds $41,800, while an increase in mining difficulty following the Halving may lead to a price surge.
Significant price surges have followed past Bitcoin Halvings, resulting in impressive gains of approximately 90x, 30x, and 7x respectively. It’s worth noting that the price of Bitcoin hasn’t revisited the levels seen prior to these rallies since then.
Looking at the trends for the different seasons, the price for April starts at around $71,000, which indicates a hopeful sign for the month. Based on historical data from Zduńczyk, we can expect an average growth of 21.95% in April, leading to a potential final price of $86,500 by the end of the month.
During the span of April 16th to 30th, Bitcoin has traditionally experienced an average growth of approximately 14.69%. This historical trend adds to the optimistic outlook and potential for increased prices in the coming weeks. As mentioned by Zduńczyk, this specific timeframe may entice investors looking to capitalize on potential price drops.
Although BTC generally looks optimistic, its current price is at $62,600 – a decrease of around 9% over the past month. In the last thirty days, this cryptocurrency has dropped significantly from its peak of $73,700 in mid-March.
Additionally, Bitcoin’s efforts to reach new records above $80,000 have been met with a notable challenge at the $70,000 mark. For more than a week, it has been unable to maintain a position above this price point despite setting a new all-time high.
Despite what Zduńczyk stressed, the possible collaboration between the thriving ETF market in the US and Bitcoin’s upcoming Halving could be crucial in reigniting its price trend.
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2024-04-17 04:16