Bitcoin Price Drops Below $60,000 Before Halving, But Traders Remain Optimistic
The price of Bitcoin briefly fell below $60,000 just days before the highly anticipated Bitcoin halving. Despite this correction, many traders are still optimistic about the long-term price outlook for Bitcoin based on historical chart patterns and institutional inflows.
According to popular crypto analyst Moustache, Bitcoin has entered the pre-halving “danger zone,” but it has reclaimed a key moving average indicator that has signaled the start of bull runs in previous market cycles. This is a positive sign for Bitcoin’s future performance.
Another crypto analyst, Rekt Capital, also notes that Bitcoin has been in the pre-halving “danger zone” since March 14. However, he suggests that Bitcoin may already be entering a reaccumulation phase, indicating a potential upward trend in the future.
Technical indicators show that Bitcoin is no longer overbought after the recent correction. The price fell from 58 to 41 on the daily chart, indicating a reset and a healthier market.
The recent geopolitical tensions between Iran and Israel may have contributed to the 7% drop in Bitcoin’s price over the past week. However, experts like John Patrick Mullin, CEO and founder of Mantra, believe that this correction is a healthy one and that the outlook for the next 18 months remains bullish.
In addition to these factors, Bitcoin traders are optimistic about the inflows from 10 spot Bitcoin exchange-traded funds (ETFs) in the United States and the recent approval of spot Bitcoin ETFs in Hong Kong. These ETFs have seen over $12.5 billion in net inflows since launch, accumulating over 838,000 BTC worth $53.7 billion in total holdings.
While the post-halving period is typically associated with short-term price stagnation, the approval of Bitcoin ETFs could change this cycle. Ivo Georgiev, CEO of Ambire, believes that the listing of the first batch of Bitcoin ETFs in Hong Kong will contribute to a price rally.
It’s important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research before making any investment or trading decisions.