As the expected halving pullback arrived, the cryptocurrency market took a downturn on Wednesday afternoon, with Bitcoin experiencing rapid selling and briefly dropping below $64,000.
According to data from Bitpush, Bitcoin reached a support level near $66,500 in early Wednesday trading before bearish sentiment took over, causing it to drop to a low of $63,560 in the afternoon, a 5.25% fluctuation from its high of $67,080. At the time of writing, BTC rebounded above $64,000 with a 3.5% decrease in the past 24 hours.
The altcoin market also experienced a general decline. Most of the top 200 altcoins by market capitalization had negative returns on Wednesday. Among the rising altcoins, meme coin Bonk (BONK) performed well with a 12.6% increase, followed by Algorand with an 11.2% increase, and dogwifhat (WIF) with a 6.8% increase. Gnosis (GNO) had the largest decrease, dropping by 13%, followed by Bittensor (TAO) with a 10.5% decrease and SATS (1000SATS) with a 9.6% decrease.
The overall cryptocurrency market capitalization is currently $2.36 trillion, with Bitcoin dominance at 53.1%.
Secure Digital Markets commented, “This trend is happening against the backdrop of a strengthening U.S. dollar index and 10-year Treasury yield, indicating that caution should still be exercised when dealing with risk assets. For Bitcoin to attract further bullish momentum, it needs to decisively break through the $67,500 level.”
In the traditional market, U.S. stocks opened higher but dropped in the afternoon due to concerns about the economy and interest rates. At the close, the Nasdaq rose slightly by 0.10%, the S&P 500 remained flat, and the Dow Jones Industrial Average fell by 0.11%.
Bitcoin needs to stay above $60,000 at least, according to market analyst Bloodgood. In a recent update, Bloodgood stated, “The bears forced Bitcoin to hit a new low, pushing it below $60,000 within a few hours. Lower lows over a longer time frame are not good news for the bulls; however, we are seeing a candlestick pattern similar to a hammer, which usually leads to continued bullishness.”
The analyst added, “Considering the halving occurred over the weekend, I expect the trend to reverse soon. If you observe the price action before and after previous halving events, you will find that prices always retraced 10-15% either before or shortly after the halving. Following the pullback, we saw several months of upward movement.”
Nevertheless, Bloodgood pointed out, “The daily timeframe is bearish. A series of lower lows and lower highs, along with decreasing volume, suggest the possibility of further downside in the short term. Unless a significant event occurs, the level we must monitor is $60,000, as that is the level we need to hold if we want to see an upward trend.”
Despite the differences from previous halving cycles, Bloodgood stated that he still expects a parabolic move to occur at some point within the next 18 months.
He concluded, “The cryptocurrency cycle has always revolved around halvings, and although things may change at some point in the future, there is still no reason to abandon the pattern that has proven to be so reliable from the beginning. This cycle is certainly a bit unusual since all-time highs typically do not occur before a halving, but the default assumption should still be that the cycle is far from over.”
Market analyst Rekt Capital stated that Bitcoin is currently in a “reaccumulation range”, which “tends to form in the weeks leading up to a halving” and “mostly after the halving”.
He said, “A few weeks after the halving, this range will be broken. The current objective is to let Bitcoin move sideways to ‘catch its breath’ and allow the market to cool off after its impressive price performance before the halving.”
Rekt Capital pointed out that the reaccumulation phase “can last for several weeks, even up to 150 days (or 5 months)”, which may lead to “many investors who bought Bitcoin after the halving being eliminated by the market due to boredom, impatience, and disappointment.”
According to Rekt Capital, “Once Bitcoin breaks out of the reaccumulation range, it will break the parabolic uptrend (green), which is when Bitcoin experiences accelerated growth and enters the parabolic uptrend. Historically, this phase has only lasted a little over a year (about 385 days), but due to the potential for an accelerated cycle now, this number may be halved in this market cycle.”
Cryptocurrency analyst Bluntz stated that Bitcoin’s recent performance indicates that the price will continue to fluctuate sideways within the range of $64,000 to $67,000.
However, he also believes that Bitcoin will “break out soon” as a bullish ascending triangle pattern is forming on the chart. According to the analyst, “Once it breaks $67,000”, the entire market will rise above new all-time highs.
Author: BitpushNews Mary Liu