Bearish Flip in Crypto Crowd Sentiments Signals Inevitable Bitcoin Price Reversal

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The overall value of all cryptocurrencies has decreased by 2.4 percent over the past day, bringing it down to approximately $2.36 trillion. This reduction in market cap occurs as the highly anticipated Bitcoin halving event in 2024 approaches. Following a strong first quarter, JPMorgan Chase & Co analysts have identified potential short-term vulnerabilities in the market post-Bitcoin’s halving event.

Based on JPMorgan’s report to investors released on Wednesday, if Bitcoin’s price continues to rise due to overbought market conditions as indicated by Open Interest in Bitcoin futures, another crypto market slide may occur.

Bitcoin Whales Undeterred

Based on the findings from CryptoQuant’s analysis of blockchain information, crypto wealthy investors have amassed approximately 27,700 Bitcoins, equating to around $1.7 billion, within the recent timeframe. Contrary to Grayscale Investments’ ongoing sell-off through its GBTC product, data from the blockchain indicates that long-term Bitcoin investors remain committed.

After the upcoming halving, the daily supply of new Bitcoins will decrease from 900 to 450 coins, making it scarcer. Given the growing interest from institutional investors and the historical pattern following past halvings, we can expect a significant increase in Bitcoin demand, potentially leading to another bull market.

Recently, Coinspeaker reported that the approval of Bitcoin and Ethereum spot ETFs in Hong Kong could increase demand for these cryptocurrencies. Furthermore, US-listed spot Bitcoin ETFs have seen impressive growth since their launch.

Crypto Price Action Amid Bitcoin Halving

In simpler terms, the cost of Bitcoin has dropped out and checked its previous assistance level near $61,000 several times over the last few weeks after hitting a new record high of $64,863 in late April. Presently, Bitcoin is in the process of establishing its value, while Bitcoin’s market power has been swallowing up the altcoin sector lately. As per the most recent market figures, Bitcoin’s dominance amounts to roughly 55.46% as of Thursday.

According to well-known cryptocurrency expert Ali Martinez, Bitcoin’s price needs to hold above the $61,000 mark to prevent a potential drop to the next significant support at roughly $56,200.

$61,000 is a very important level for $BTC! If it breaks, it will trigger a correction to $56,200.
If Bitcoin manages to bounce back, there’s a possibility it could reach $66,500. The initial indication of this recovery will be a consistent closing of the 4-hour candlestick above $62,300. Until then, we prepare for… (brace for can also mean prepare or get ready)
— Ali (@ali_charts) April 18, 2024

If the price of Bitcoin recovers from its current position before the upcoming halving event, then reaching a new all-time high is highly likely.

On the Flipside

In the face of cryptocurrency markets experiencing turbulence, many traders have sought safety in the relatively stable sector of stablecoins. Based on statistics from Coingecko, this sector accounts for approximately $88.5 billion of the total daily trading volume, which is around 76% of the industry’s $117 billion worth of transactions.

Based on cryptocurrency enthusiasts’ perspective, the bull market for Bitcoin and other cryptos seems to have concluded following a significant 16% decrease in value since its peak of $73.6K on March 14th. Simultaneously, there’s been a growing chatter about bear markets. Typically, market trends shift in the opposite direction.

— Santiment (@santimentfeed) April 17, 2024

Based on their examination of the current data, the cryptocurrency market intelligence firm Santiment found that the tone among crypto traders has shifted from optimistic to pessimistic. Yet, Santiment identified a potential sign of an upcoming crypto market rebound: a decrease in the feeling of urgency to buy, or FOMO, accompanied by a rise in fear, uncertainty, and doubt (FUD).

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2024-04-18 15:15