Bitcoin slides ahead of halving event – Crypto News
April 18, 2024 3:27 pm
Bitcoin drops to its lowest in six weeks, a tad below $60,000
Geopolitical tensions and slower rate cuts weigh on cryptos
Focus shifts on halving event expected between April 19 and 20
Bitcoin dips as market turn risk-off
This has been a harsh week for Bitcoin, which has not yet been able to find traction after posting its biggest intraday loss since March 2023 in the aftermath of the Iranian missile attack against Israel. Besides geopolitical concerns, the repricing around Fed expectations has sent Treasury yields higher, inflicting severe damage on risk sensitive assets.
More specifically, the king of cryptos fell below the $60,000 handle for the first time in six weeks before recouping some losses. In general, the broader risk sentiment remains risk-off as the world is bracing for Israel’s response to the Iranian attack, which is also evident by the ongoing pullback in equity indices and steady daily outflows observed in Bitcoin ETFs.
Halving is just around the corner
The Bitcoin halving, which is expected to occur sometime between April 19 and 20, is a process that occurs approximately every four years and essentially slices mining rewards in half. In theory, when the supply of a product is reduced but demand stays at the same levels, its price should appreciate.
There has been ample speculation that halving could prove to be another buy-the-rumor sell-the-news type of event like the introduction of spot-Bitcoin ETFs was, given Bitcoin’s exponential advance to fresh all-time highs. However, things are starting to look more complicated following the strong pullback observed in Bitcoin prices ahead of the event.
In a nutshell, the leading cryptocurrency is likely to come under further downside pressure after the event, but its capped supply seems to be acting as a bullish long-term catalyst.
Further losses or a double bottom?
BTCUSD experienced a strong pullback following the formation of a triple top pattern, sliding below its 50-day simple moving average (SMA). Meanwhile, the price dropped to a fresh six-week low a tad beneath the 60,000 psychological mark and very close to its March bottom, where a potential bounce might generate a double bottom pattern.
To the downside, if the March hurdle of $59,313 fails to hold its ground there is no prominent support until the February resistance zone of $52,850.
On the flipside, bullish actions could propel the price higher towards the inside swing low of $64,500 ahead of the $69,000 barricade.
Bitcoin drops to its lowest in six weeks, a tad below $60,000
Geopolitical tensions and slower rate cuts weigh on cryptos
Focus shifts on halving event expected between April 19 and 20
Bitcoin dips as market turn risk-off
This has been a harsh week for Bitcoin, which has not yet been able to find traction after posting its biggest intraday loss since March 2023 in the aftermath of the Iranian missile attack against Israel. Besides geopolitical concerns, the repricing around Fed expectations has sent Treasury yields higher, inflicting severe damage on risk sensitive assets.
More specifically, the king of cryptos fell below the $60,000 handle for the first time in six weeks before recouping some losses. In general, the broader risk sentiment remains risk-off as the world is bracing for Israel’s response to the Iranian attack, which is also evident by the ongoing pullback in equity indices and steady daily outflows observed in Bitcoin ETFs.
Halving is just around the corner
The Bitcoin halving, which is expected to occur sometime between April 19 and 20, is a process that occurs approximately every four years and essentially slices mining rewards in half. In theory, when the supply of a product is reduced but demand stays at the same levels, its price should appreciate.
There has been ample speculation that halving could prove to be another buy-the-rumor sell-the-news type of event like the introduction of spot-Bitcoin ETFs was, given Bitcoin’s exponential advance to fresh all-time highs. However, things are starting to look more complicated following the strong pullback observed in Bitcoin prices ahead of the event.
In a nutshell, the leading cryptocurrency is likely to come under further downside pressure after the event, but its capped supply seems to be acting as a bullish long-term catalyst.
Further losses or a double bottom?
BTCUSD experienced a strong pullback following the formation of a triple top pattern, sliding below its 50-day simple moving average (SMA). Meanwhile, the price dropped to a fresh six-week low a tad beneath the 60,000 psychological mark and very close to its March bottom, where a potential bounce might generate a double bottom pattern.
To the downside, if the March hurdle of $59,313 fails to hold its ground there is no prominent support until the February resistance zone of $52,850.
On the flipside, bullish actions could propel the price higher towards the inside swing low of $64,500 ahead of the $69,000 barricade.
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