Bitcoin's Dips Ahead of Halving Inspire Optimism Amid ETF Inflows
Summary:
Bitcoin experienced a brief dip below $60,000 just days before the expected halving, stirring optimism and concern among traders. Any potential downturn seems temporary as Bitcoin has reclaimed essential moving average indicators and appears to be entering a reaccumulation phase. Many view the current price drop as a healthy correction and remain bullish on Bitcoin's long-term outlook, thanks to likely inflows from the newly approved Bitcoin ETFs in the US and Hong Kong.
Bitcoin's price temporarily dropped under $60,000 mere days ahead of the heavily projected Bitcoin halving. However, several investors maintain a positive forecast for Bitcoin's long-term price trend, drawing from historical price behaviour and institutional investment inflows. Despite the recent fluctuation, Bitcoin (BTC) managed to regain control of a crucial moving average marker. This recovery instigated the onset of bull run periods in previous market phases, explained prominent crypto expert Moustache in an April 16 editorial: “Even though a further drop in prices is anticipated by many, I am not among them. BTC regained authority over the [blue] line last month, that's a good sign. This very scenario played out in 2012, 2016 and 2020 when Bitcoin was only beginning to surge."
A known crypto analyst, Rekt Capital, on April 17 revealed that Bitcoin has been operating within the perilous “danger zone” for a month, since March 14: "Bitcoin has been navigating the 'Danger Zone' (orange) for a month now. During this timeframe, Bitcoin has twice made a decline: -18% in March, nearly -16% this time."
This unnamed analyst suggests that Bitcoin might be transitioning into a reaccumulation phase based on an April 17 video: "We've already gone through the pre-halving price drop - a -17% downside, marking a possible gradual shift into the re-accumulation stage."
Following Bitcoin's recent adjustment, major technical markers have been reset, implying that Bitcoin is not currently overvalued, it has dropped to 41 on the daily chart from 58 on April 8. Over the past week, Bitcoin's price has dropped by a little over 7%, a situation attributed to the ongoing geopolitical issues between Iran and Israel, according to John Patrick Mullin, CEO and Founder of Mantra.
Mullin maintains a positive long-term viewpoint, asserting that the current drop in price is a healthy correction, with the next 18 months still pointing towards a bullish market. Moreover, the inflows from the US's 10 spot Bitcoin ETFs and the recent authorization of spot Bitcoin ETFs in Hong Kong set to launch in the coming two weeks are fostering a favorable environment.
Inflows into the Bitcoin ETFs have surpassed $12.5 billion since their launch, amassing over 838,000 BTC, totaling to $53.7 billion in overall holdings, as per Dune. Ivo Georgiev, CEO of Ambire, predicts that this halving cycle could be different due to the approval of Bitcoin ETFs.
The Hong Kong's introduction of the first lot of Bitcoin ETFs will also add to Bitcoin's price gain, according to Mantra’s CEO, Mullin. He implied that the new influx of funds from global ETFs into the crypto market is not adequately accounted for in current analyses, elaborating that it's not just about BlackRock, Grayscale, and Hong Kong, but about many more large-scale funds that crypto hasn't experienced before.
Published At
4/18/2024 12:30:00 AM
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