The flagship cryptocurrency, BitcoinThe price of has dropped to below $63,000 in the past 24 hours. It is now on a correction after hitting a new high all time (ATH) at $73,750. The price drop is thought to be caused by several factors including Bitcoin HalvingThe upcoming.
Bitcoin is now in its second phase of halving. The Trend of Using
Rekt Capital is a crypto trader and analyst. recently provided He provides insights into four phases in the Bitcoin Halving process, and explains Bitcoin’s recent drop. He suggested that Bitcoin was entering into the ‘Final Pre-Halving Retrace,’ having just concluded with the ‘Pre-Halving Rally.’
This ‘Final Pre-Halving Retrace’ is said to occur 28 to 14 days before the Halving event. This time, however, the onset seems to be a bit earlier (similarly to that of the Pre-Halving RallyThe Halving is still 30 days off. Rekt Capital referred to Bitcoin’s pre-Halving pullbacks in 2020 and 2016 when it fell by 20% and 38%, respectively.
Bitcoin’s price has dropped by over 11 percent in the last week. The analyst also noted that the Halving phase can continue for a long time. “multiple weeks and up to 77 days.” Rekt Capital expects the period to be shorter. historical ones. He also said this year’s Pre-Halving Retrace “would more likely be on the shallower side than on the deeper side.”
Bitcoin holders who hold bitcoins for a long time are gaining profit
Alex ThornIn an X, (formerly Twitter), the Head of Research for Galaxy Digital is highlighted. post Long-term Bitcoin owners are beginning to sell. It is evident by the different metrics such as coins that have been static for over a month.
Crypto analyst Ali Martinez We have previously mentioned this profit-taking wave, and noted data from Glassnode’s market intelligence platform, showing that holders of over 1,000 BTC are increasingly cashing out. It has led to an overall drop of 4.83% in BTC addresses for this group over the last few weeks.
Thorn was optimistic in his blog post about Bitcoin’s future, noting the fact that there are new whales entering. Spot Bitcoin ETF Some others exit the market. He suggested some whales weren’t leaving the market, but were selling spot BTC instead and buying Bitcoin ETFs.
Bitcoin Sentiment is currently Bearish
Data Coinglass data shows the bears are currently in the lead, as they have almost $82 millions. long positions liquidated The shorts sold in the last day were worth just under $23 Million.
Also, there has been an decrease in open interest On these exchanges. This suggests traders choose to stay away from the market. Derivatives activity indicates that Bitcoin has a bearish outlook, as many expect more declines.
Bitcoin’s price is currently around $63,000. This represents a drop of over 4% from the previous 24 hours. data CoinMarketCap.
Source:| Source: BTCUSD on Tradingview.com
Image from Tradingview.com. Chart by Analytics Insight
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