Bitcoin Navigates Choppy Waters: Prices Oscillate Following Weekend Drop and Halving Predictions
Summary:
Bitcoin started its trading around $65,500 after a chaotic weekend that saw prices fall approximately to $61,000. This decrease was a response to political unrest in the Middle East. Traders are currently bracing for Bitcoin's 'block subsidy halving', an event known for creating choppy trading conditions. Amidst these speculations, Hong Kong approved both spot Bitcoin and Ether exchange-traded funds, bringing the attention back to their U.S. counterparts. Concurrently, overall ETF inflows markedly slowed in recent weeks.
Bitcoin, in its current state, is oscillating around the $65,500 mark at the dawn of Wall Street's April 15 trading launch. This follows an erratic weekend that left traders cautiously nursing their fiscal bruises. At present, information gathered from Cointelegraph Markets Pro and TradingView suggests a somewhat sedate beginning to the American conventional financial trading week. The tempestuous scenes seen over the weekend, which saw Bitcoin drop to approximately $61,000, were a stark contrast to the current tranquil landscape. The dip resulted from a sudden response to political unrest within the Middle East, causing Bitcoin to swerve, avoiding the steeper drops experienced by altcoins. Traders are now cautiously anticipating an unstable period ahead. A critical factor is the impending 'block subsidy halving' of Bitcoin, an event notorious for generating turbulent trading conditions. Keith Alan, co-founder of Material Indicators, a trusted trading resource, commented on the matter on X, previously known as Twitter. He suggested that the possibility of rising geopolitical tensions could shift Bitcoin's trajectory. Alan also indicated the changing liquidity conditions of exchange order books, implying that any resistance exceeding $70,000 will likely remain until the bulls can bring bids close to the current spot price. CoinGlass data, on the other hand, suggested that Bitcoin was absorbing the bid liquidity at, and below, $66,000 at the time of writing. Amidst these speculations, we also receive the news that Hong Kong has given the green light to both spot Bitcoin and Ether ETFs (Exchange-traded funds), shifting the focus back on their American counterparts. Skew, another seasoned trader, expressed concerns that investors might refrain from participating on the first trading day of the week, motivated by the dip witnessed in the weekend. Today, he cautioned on the potential price impact of spot flows while watching spot ETF markets. Notably, recent weeks have witnessed a considerable slowdown in overall ETF inflows. Nevertheless, today only saw a slight outflow from the Grayscale Bitcoin Trust (GBTC), roughly estimated at 1,600 BTC ($105 million). This data from Arkham, the crypto intelligence firm, was revisited by Daan Crypto Trades on X on the popular trader's page. He indicated that the GBTC flows are progressively losing their significance as a measure. Please remember all investments and trading activities carry inherent risks, and due diligence should be exercised with independent research before making decisions.
Published At
4/15/2024 5:24:40 PM
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