Bitcoin enthusiasts around the globe can now breathe a collective sigh of relief as the world’s premier cryptocurrency, Bitcoin, rebounds from a recent downturn.
Last week witnessed Bitcoin, akin to the broader market, sliding below the $60,000 mark, primarily due to risk aversion, the US tax season, and escalating geopolitical tensions in the Middle East. However, in a surprising turn of events, Bitcoin has not only recovered but has surged past the $66,000 mark, reigniting optimism and sparking discussions about its future trajectory.
This recent resurgence in Bitcoin’s price comes on the heels of a significant price correction that coincided with April’s highly anticipated Bitcoin halving event. The halving event, a recurring phenomenon in Bitcoin’s protocol, entails a reduction in the rate at which new Bitcoins are mined, effectively halving the supply.
20% drawdown would fit the current bull’s pattern: pic.twitter.com/usNxQz1t92
— Tuur Demeester (@TuurDemeester) April 18, 2024
Historically, this event has been associated with heightened market volatility, as some analysts feared that the supply shock could trigger a prolonged sell-off.
Nevertheless, prominent figures in the cryptocurrency space, such as Tuur Demeester, offer a more sanguine perspective. Demeester suggests that the recent dip to $60,000 might signal the floor of the correction, aligning with historical patterns observed during bull markets.
According to Demeester, a 20% drawdown from highs is considered a typical correction for Bitcoin, and thus, there is a strong possibility that $60,000 could serve as a support level moving forward.
BTCUSD trading at $65,883 on the 24-hour chart: TradingView.com
While Demeester advocates for stability in Bitcoin’s price, anoother analyst, McKenna, foresee a period of sideways movement. McKenna agrees with Demeester regarding the $60,000 floor but predicts that Bitcoin may enter a re-accumulation phase, characterized by prolonged sideways price action.
I think there is a high probability that the bottom for the halving selloff is in but simultaneously think there is an equal high probability that we are forming a re-accumulation range.
Meaning expect sideways price action for longer than expected. #BTC pic.twitter.com/K24Md0TKXH
— McKenna (@Crypto_McKenna) April 21, 2024
Interestingly, McKenna believes that this sideways movement could present an opportune moment for alternative cryptocurrencies,…
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