Crypto News

Bitcoin and Ethereum Show Signs Of Relief Amid Market Turbulence

Bitcoin experienced a significant 6.0% drop in the past 24 hours, sparking fear and uncertainty among traders. However, this dip has also led to discussions about a potential relief rally on the horizon. 

Both Bitcoin and Ethereum have been the focal points of heightened discussion today, with BTC dropping to as low as $59.5K and ETH to $2.9K.

Despite the initial panic, some traders are viewing this as a prime opportunity to buy the dip, leading to a mild relief bounce in the market.

Analyst Ali Martinez shed light on historical patterns surrounding Bitcoin’s halving events. In both 2016 and 2020, Bitcoin consolidated for extended periods—189 days and 87 days, respectively—before the onset of a new bull run. 

Currently, BTC has been in a consolidation phase for 61 days, suggesting that a potential breakout may be on the horizon. Martinez also highlighted the significance of Bitcoin testing the 100-day EMA (Exponential Moving Average) while the RSI (Relative Strength Index) dipped to 36. A similar scenario in late January led to a major price rebound, indicating that history may repeat itself.

However, caution is advised, as a sustained close below the 100-day EMA could signal a further drop toward the 200-day EMA. Additionally, the market faces significant liquidation risks, with $67.22 million set to be liquidated on Binance alone if Bitcoin rebounds to $62,600.

Bitcoin ETF Net Inflow Continues In Negative Zone 

Bitcoin ETF net inflow data for April 30, 2024, reflects a continued trend of negative inflows for the fifth consecutive trading day. Most Bitcoin ETFs experienced outflows or zero flows, with notable instances such as BlackRock iShares Bitcoin Trust experiencing zero flows for five consecutive trading days. 

The single-day outflow of Grayscale Bitcoin Trust also increased significantly, further adding to market uncertainty. 

Overall, while the market remains turbulent, there are indications of potential relief and recovery on the horizon, providing cautious optimism for investors and traders alike.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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