As the Bitcoin halving approaches in a few days, the digital currency has experienced significant volatility. On Tuesday alone, BTC experienced a nearly 7% decrease, ranging from $66,000 to its current price of $63,225, resulting in over 12% loss for the week.
Bitcoins’ previous monthly advances have been erased, leaving it currently confined between two parallel lines on the chart. It’s important for investors to keep an eye on emerging resistance and support points.
Key Support and Resistance Levels
Based on recent analysis by well-known cryptocurrency expert Ali Martinez, Bitcoin has been confined to a parallel channel in its price movement. He pinpointed $61,000 as the significant support line within this channel. Conversely, $72,400 represents the key resistance level for Bitcoin’s price progression.
Martinez issued a caution: if Bitcoin dips below the support level, it could lead to a drop in price to around $56,200 or even $51,600. On the positive side, surpassing the current resistance level could propel Bitcoin’s value significantly higher, potentially reaching goals of $79,000 and $86,000.
“Let’s not complicate things and just pay attention to trends in support and resistance. Based on current trends, Bitcoin seems to be moving within a parallel channel. This means that the levels of $61,000 and $72,400 carry significant importance as potential support and resistance, respectively. If Bitcoin falls below support, we may see it head towards $56,200 or even $51,600. Conversely, a break above resistance could lead to targets of $79,000 and possibly $86,000.”
Some specific whale entities have increased their investments, even as the volatile market prices have been influenced in part by increasing geopolitical conflicts.
Starting from March 1st, Bitcoin wallets containing between 100 and 1,000 coins (equivalent to 100-1,000 BTC) purchased approximately 43,489 coins worth roughly $2.75 billion, according to Santiment’s data. Simultaneously, wallets holding between 1,000 and 10,000 coins (1,000-10,000 BTC) accumulated approximately 80,544 coins valued at around $5.1 billion. This pattern is reminiscent of the behavior seen in wallets possessing 10,000 to 100,000 coins (10,000-100,000 BTC), which acquired approximately 91,732 coins worth around $5.8 billion.
Bitcoin’s Trajectory Uncertain or Normal Occurrence?
Many crypto investors have been concerned by the recent drop in prices. But according to CryptoQuant, this trend is consistent with historical patterns observed during past Bitcoin halving events.
In past halving cycles, similar price drops were witnessed before significant surges.
During the second and third phases of Bitcoin’s halving process, there were drops of 40% and over 20% respectively before Bitcoin reached new all-time highs of $19,600 and $69,000. The current Bitcoin cycle is showing a similar pattern with a decline, which is considered a normal and expected part of the process.
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2024-04-17 16:49