Crypto News

Bitcoin Halving Aftermath: Analyzing Market Sentiment And Predictions

The aftermath of the April 19th Bitcoin halving has sparked varied narratives within the cryptocurrency community.

While historical price data post-halving events tends to lean bullish, the trajectory of Bitcoin’s climb to $75K, $100K, and beyond hinges on several factors, including whale and shark behavior, the circulation of dormant coins, and the network’s realized profits versus losses.

Analysis from intotheblock reveals that long-term Bitcoin holders have begun selling off their holdings, with the trend accelerating since January and peaking in late March. While this may raise concerns initially, it aligns with historical market cycles and suggests there is still ample time remaining compared to previous cycles.

However, analyst Ali Martinez points out two sell signals on the Bitcoin 12-hour chart: a death cross between the 50 and 100 SMA and a red 9 candlestick from the TD Sequential. Should Bitcoin fall below $63,300, the market could witness further declines to $61,000 or even $59,000.

Bitcoin BTC ETF Volume Still Robust Despite Dull Market Movements

On a positive note, Bitcoin ETF volume remains robust, recently reaching its highest daily collective volume in four weeks at $3.62 billion. This activity, encompassing ETFs like $GBTC, $IBIT, and $FBTC, underscores a bullish sentiment for the cryptocurrency sector, providing a source of confidence amidst unpredictable market movements.

However, spotonchain data reveals a concerning trend with Bitcoin ETF net inflow for April 24, 2024, summing at -$121 million. This shift to negative inflow comes after three consecutive trading days of positivity, indicating potential market volatility. 

Notably, the single-day outflow of Grayscale Bitcoin Trust rose to $130.4 million, nearly double the previous day’s value.

In summary, while bullish sentiments prevail based on historical trends and ETF activity, caution is advised given the potential impact of sell signals and negative ETF inflows on Bitcoin’s price trajectory.

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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Image Source: andriiborodai/123RF // Image Effects by Colorcinch

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