Key Points
- Bitcoin (BTC) experiences more than 4.5% drop in value within 24 hours, with indicators suggesting further decline.
- Bitcoin’s fourth halving is imminent, causing speculation about the cryptocurrency’s price reaction post-halving.
Bitcoin, popularly known as the king of crypto, is set to undergo its fourth halving in a few hours. This event has sparked numerous speculations regarding the possible reaction of the cryptocurrency’s price in the near term.
Halving and its Impact
Halving is a significant event in the crypto space as it directly impacts Bitcoin’s supply. Following this event, the rewards for Bitcoin miners will be halved. As the crypto community eagerly awaits this event, Bitcoin bears continue to dominate the market.
The last 24 hours saw a drop of nearly 4% in Bitcoin’s value. As of the time of writing, Bitcoin was trading at $60,995 with a market capitalization of over $1.2 trillion. It’s important to note that the halving might not have an immediate positive impact on Bitcoin’s price.
Market Indicators
Crypto analyst, Michael van de Poppe, suggests that investors might witness several calm days before another impulse. Bitcoin’s Fear and Greed Index’s value was also dropping, suggesting slow-moving days ahead.
Further analysis of data from Glassnode reveals that Bitcoin’s network to value (NVT) ratio registered an uptick after a sharp decline on the 15th of April. This increase suggests that the asset is overvalued, hinting at a possible price correction.
CryptoQuant’s data shows that Bitcoin’s Net Unrealized Profit and Loss (NUPL) was rising. This indicates that investors were in a “belief” phase with high unrealized profits. However, technical indicators remained bearish with both Bitcoin’s Relative Strength Index (RSI) and Money Flow Index (MFI) registering downticks.
The MACD displayed a clear bearish upperhand in the market, hinting at a further price decline. If the downtrend continues post-halving, Bitcoin has a support level near $59,950. A drop below that level could push Bitcoin’s price down near $58k, where a substantial amount of Bitcoin will get liquidated.
