Bitcoin supporters worldwide can relax now as Bitcoin, the leading cryptocurrency, recovers from a recent slump.
Last week, Bitcoin, like the rest of the market, dropped below $60,000. This was mainly due to increased caution among investors, the US tax season approaching, and heightened tensions in the Middle East. But then, unexpectedly, Bitcoin bounced back and even went above $66,000 once more. This has rekindled hope and fueled debates about its potential future growth.
After a notable drop in Bitcoin’s price leading up to it, the cost of Bitcoin has surged again. This occurrence follows closely on the heels of April’s much-anticipated Bitcoin halving. In Bitcoin’s system, this halving is a routine event that means the number of new Bitcoins produced by mining is cut in half.
20% drawdown would fit the current bull’s pattern:
— Tuur Demeester (@TuurDemeester) April 18, 2024
In the past, this occurrence has been linked to increased market instability due to concerns among certain experts that the disruption in supply could lead to a lengthy stock market downturn.
Despite some pessimistic views in the cryptocurrency world, notables like Tuur Demeester propose a more optimistic outlook. He believes that the latest drop to $60,000 could mark the bottom of the correction and follows trends seen during past bull markets.
Based on Demeester’s perspective, a 20% decrease from previous peaks is often observed as a regular correction for Bitcoin. Therefore, it’s likely that $60,000 may function as a supportive price point in the future.
According to Demeester, it’s important for Bitcoin’s price to remain steady. In contrast, McKenna anticipates a spell of price movement that goes back and forth around an average level, instead of a clear upward trend or downturn. Both analysts share the belief that $60,000 represents a lower limit for Bitcoin’s value. However, McKenna believes that Bitcoin might enter a phase where it collects more buyers and sellers before continuing its price movement.
I believe we might have reached the bottom of the selloff due to the Bitcoin halving, but it’s also plausible that we’re witnessing a period of renewed buying and accumulation.
Meaning expect sideways price action for longer than expected. #BTC
— McKenna (@Crypto_McKenna) April 21, 2024
McKenna finds it intriguing that this lateral shift in the crypto market might offer a favorable chance for lesser-known digital currencies, called altcoins, to make an impact in the near future.
In recent times, Bitcoin’s price surge has fueled hope amongst investors and experts, making them eagerly anticipate May. The focus is now on whether Bitcoin will continue moving laterally or break free from it, and if the impact of the halving process will indeed fade away.
With a hopeful but careful attitude, the present price range of $60,000 to $71,000 may serve as a significant area for price movements in the future, potentially marking the start of a new period of growth and success in the cryptocurrency industry.
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2024-04-22 16:34