Key Points
- Bitcoin’s price shows signs of recovery but could drop due to high selling pressure.
- Analysts predict Bitcoin may not reach new highs until the next halving event.
Bitcoin’s price has shown a slight increase in the last 24 hours. However, several indicators and metrics suggest that a price drop may be imminent.
Bitcoin’s Consolidation Phase
Bitcoin’s price has been in a consolidation phase for weeks, not reaching new all-time highs. This trend could continue, with investors possibly not seeing Bitcoin reach new highs until the next halving event.
Bitcoin’s price fell under the $66k mark, causing $200 million worth of liquidations across the cryptocurrency market. Despite this, Bitcoin showed signs of recovery with its price jumping above $66k. As of writing, Bitcoin was trading at $66,277.96 with a market capitalization of over $1.3 trillion.
Analysts’ Predictions
Crypto analyst, Michael Van de Poppe, tweeted that Bitcoin was consolidating, and he did not expect it to touch a new ATH before the upcoming halving event. The next Bitcoin halving, which will reduce Bitcoin’s issuance rate and miners’ rewards, is scheduled to happen in 15 days. Poppe also predicted the possibility of Bitcoin dropping to $60k–56k this summer.
Several bearish metrics hint at a price drop. For instance, Bitcoin’s net deposit on exchanges was high, suggesting high selling pressure. Also, more investors were selling at a profit, which can indicate a market top during a bull market. Furthermore, the selling sentiment among Korean investors was high.
Bitcoin’s daily chart shows a bearish crossover in its MACD. The Money Flow Index (MFI) registered a downtick, hinting at a further price drop. However, the Bollinger Bands revealed that Bitcoin’s price was in a less volatile zone, which can restrict its price from falling sharply.
If a Bitcoin downtrend happens, data suggests that Bitcoin has strong support near the $66k mark. However, if Bitcoin’s price fails to test that level, its price might drop to $60k, where it also has strong support.
