Bitcoin Dump Expected, BTC in 'Boring Zone' as Whales Exit

bitcoin is under immense selling pressure at spot rates, falling from the important resistance level of $66,000. Although btc may even fall below the psychological line of $60,000 towards $56,500 or May 2024 lows, some analysts are optimistic.

bitcoin drop is normal after halving: analyst

Carrying x, an analyst x.com/BittelJulien/status/1803110973479215412″ target=”_blank” rel=”noopener nofollow”>explained that the current correction is a normal part of its cyclical market cycle. In any case, smart traders should continue to accumulate on the dips, aiming for all-time highs in the first quarter of 2024, and wait for prices to chart new territories.

Looking at the formation on the daily chart, the analyst insisted that bitcoin's current price action aligns with historical trends, especially the weeks after the network halved miner rewards.

bitcoin is now in the fifth epoch after Halving on April 20, cutting miner rewards from 6.25 btc to 3.125 btc, significantly impacting miners' income streams.

As things stand, btc is in a familiar pattern, even with the 12% correction from the all-time high of $73,800. According to the analyst, btc prices tend to rise before Halving.

From October 2023 to March 2024, prices skyrocketed, from as low as $25,000 to all-time highs. However, the surge in demand was also accelerated by the U.S. Securities and Exchange Commission's (SEC) expectations of approving a spot btc exchange-traded fund (ETF). The product began to be marketed in January 2024.

btc in the 'boring zone' as whales unload

The pre-halving rally was followed by a sharp correction after the event, which btc fell 25% to just $56,500 in May.

Once this phase is over, prices tend to move sideways with minimal volatility before a final push lower to shake traders.

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Before prices rise in the “Banana Zone”, prices enter another phase of extended consolidation marked by stagnant prices. It remains to be seen if btc is in the “boring zone” due to the current decline within the $56,500 and $73,800 zone.

Ki Young Ju, founder of CryptoQuant, a blockchain analysis platform, x.com/ki_young_ju/status/1803137868254343450″ target=”_blank” rel=”noopener nofollow”>saying Whales have been dumping their btc for the past two weeks.

According to the chain's data, these long-term holders have sold approximately $1.2 billion worth of the coin, likely through brokers, which has suppressed prices. Rising outflows from spot bitcoin ETFs have also curbed the bullish trend.

Featured image from Canva, TradingView chart