Bitcoin is trying to recover $70,000 ahead of halving.
As the new week begins, Bitcoin faces a difficult recovery path as it attempts to recover from a steep 14.58% drop in value. The decline in cryptocurrency prices over the past week has left traders scrambling to reassess their positions, especially after a turbulent weekend that saw cryptocurrency market capitalizations decline significantly.
Despite the turmoil, the resilient cryptocurrency has shown signs of a rebound. The sharp price fluctuations once again highlight Bitcoin’s sensitivity to geopolitical developments. Analysts draw parallels between the current market reaction to tensions in the Middle East and the dramatic cryptocurrency sell-off triggered by the COVID-19 pandemic in March 2020.
The immediate market reaction to the growing hostilities between Israel and Iran was sharp, with altcoins suffering most of the losses. However, Bitcoin (BTC/USD) settled above the $60,000 support level.
With Bitcoin’s next halving, a significant event that historically impacts its price due to a decline in new coin creation, just days away, market observers are bracing for continued volatility.
Over the course of a week, Bitcoin witnessed dramatic changes, plummeting from $72,112 on April 8 to $61,593 on April 14. These price movements coincided with heightened geopolitical tensions as Iran responded with drone and missile attacks. Israel’s military operation in Syria.
While markets are reeling from the shock waves of geopolitical instability, the focus appears to be different on the upcoming Bitcoin halving. Although this event, which is just four days away, is overshadowed by immediate price concerns, it is still an important factor in long-term valuation.
Provides insight into Bitcoin’s trajectory, John GloverChief Investment Officer, Ledn; shared technical analysis based on one year of Bitcoin historical data and roughly nine months into the project.
Glover describes a possible scenario: “We continue to develop triangle formations, and the direction of departure, whether from the lower limit or the upper limit, determines the path. If we follow my preferred blue wave numbers, we could see Bitcoin reaching around $85,000 before a significant decline and possibly surging past $100,000. Conversely, a breakout into the mid-$50,000 region could occur to shake off weak long positions before rising again towards the $90,000 mark.”
He also said, “If the halving doesn’t immediately push prices higher, we could see the market testing lower support levels. But long position holders should remain firm.”
As of this writing, Bitcoin is worth $66,303, and trading volume has surged to $43 billion in the last 24 hours. As traders and investors alike navigate the quagmire of current events and upcoming milestones, Bitcoin’s journey ahead will be more exciting than ever.
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