Bitcoin Dropped Below $60,000 But Traders Stay Optimistic

Even with Bitcoin dipping below $60,000 momentarily, a crypto analyst suggests that the market might be transitioning into a reaccumulation phase within the cycle.

Source: kriptokoin.com

Just days before the highly anticipated Bitcoin halving, the price briefly slipped below $60,000. Despite this, numerous traders maintain their optimism regarding Bitcoin's long-term price trajectory, citing historical chart patterns and continued institutional investments as key indicators.

Bitcoin Continues To Linger In The Danger Zone Ahead Of The Impending Halving Event

Even with the recent price correction, Bitcoin has managed to reclaim a crucial moving average indicator. “This indicator has historically heralded the beginning of bull runs in previous market cycles”, as highlighted by renowned crypto analyst in an April 16th post on X. According to a popular crypto analyst, who wrote in an April 17 X post: “Bitcoin has been in the pre-halving danger zone for a month since March 14.” The analyst added that Bitcoin could already be entering a reaccumulation phase. 

After the correction in Bitcoin, significant technical indicators have been reset, indicating that Bitcoin is no longer overbought. The daily chart shows a decline to 41 from 58 on April 8th. The Bitcoin price has fallen over 7% during the past week. The main reason behind the price drawdown could be the recent geopolitical tensions between Iran and Israel.

Inflows Into Bitcoin ETFs Are Anticipated To Fuel A Post Halving Rally

Bitcoin traders also remain optimistic thanks to the continued inflows from the 10 spot Bitcoin exchange-traded funds (ETFs) in the United States and the recent approval of spot Bitcoin ETFs in Hong Kong, which are set to launch for trading over the next two weeks. The Bitcoin ETFs have seen over $12.5 billion in net inflows since launch, amassing over 838,000 BTC, worth $53.7 billion in total holdings. While the post-halving period is usually followed by short-term price stagnation, this cycle could be different due to the approval of Bitcoin ETFs.

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