bitcoin enthusiasts around the world can now breathe a collective sigh of relief as the world's leading cryptocurrency, bitcoin, recovers from a recent recession.
Last week he witnessed bitcoin, similar to the broader market, falling below the $60,000 mark, mainly due to risk aversion, the US tax season, and escalating geopolitical tensions in the Middle East. However, in a surprising turn of events, bitcoin not only recovered but surpassed the $66,000 mark, reigniting optimism and sparking debates about its future trajectory.
This recent bitcoin price resurgence comes on the heels of a major price correction that coincided with the highly anticipated bitcoin halving event in April. The halving event, a recurring phenomenon in the bitcoin protocol, involves a reduction in the rate at which new Bitcoins are mined, effectively halving the supply.
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A 20% reduction would fit the current bullish pattern: pic.twitter.com/usNxQz1t92
– Tuur Demeester (@TuurDemeester) twitter.com/TuurDemeester/status/1780973325759521253?ref_src=twsrc%5Etfw” rel=”nofollow”>April 18, 2024
Historically, this event has been associated with increased market volatility, as some analysts feared the supply shock could trigger a prolonged sell-off.
However, prominent figures in the cryptocurrency space, such as Tuur Demeester, offer a more optimistic outlook. Demeester suggests that the recent drop to $60,000 could signal the bottom of the correction, aligning with historical patterns seen during bull markets.
According to Demeester, a 20% drop from the highs is considered a typical correction for bitcoin and therefore there is a strong possibility that $60,000 could serve as a support level going forward.
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BTCUSD trading at $65,883 on the 24-hour chart: TradingView.com
While Demeester advocates for bitcoin price stability, another analyst, McKenna, foresees a period of sideways movement. McKenna agrees with Demeester regarding the $60,000 floor, but predicts that bitcoin may enter a reaccumulation phase, characterized by prolonged sideways price action.
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I think there is a high probability that the halving bottom is near, but at the same time I think there is an equally high probability that we are forming a reaccumulation range.
That is, waiting for sideways price action for longer than expected. twitter.com/hashtag/btc?src=hash&ref_src=twsrc%5Etfw” rel=”nofollow”>#btc pic.twitter.com/K24Md0TKXH
-McKenna (@Crypto_McKenna) twitter.com/Crypto_McKenna/status/1782013586090397909?ref_src=twsrc%5Etfw” rel=”nofollow”>April 21, 2024
Interestingly, McKenna believes this sideways move could present an opportune time for alternative cryptocurrencies, known as altcoins, to shine in the near term.
The recent resurgence in bitcoin price has sparked optimism among investors and analysts alike. As attention turns to May, all eyes are on whether bitcoin's sideways move materializes and whether the effects of the halving event truly dissipate.
With cautious optimism prevailing, the current price range between $60,000 and $71,000 could become a pivotal zone for future price dynamics, ushering in a new era of prosperity in the cryptocurrency markets.
Featured image by Pxfuel, chart by TradingView
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