Impending Price Correction for Bitcoin ETFs as Bitcoin Halving Approaches
With the recent influx of Bitcoin exchange-traded funds (ETFs) pushing the price of Bitcoin (BTC) past $50,000 and the upcoming Bitcoin halving, there are indications that a price correction may be on the horizon. The TD Sequential indicator has signaled a sell on the 3-day chart for Bitcoin, suggesting a potential -10% correction for the leading cryptocurrency. In previous instances, when this indicator signaled bearish conditions, BTC experienced a price correction of approximately -10%. This could result in a significant reduction in Bitcoin’s market cap, which recently surpassed $1 trillion.
Implications of a Slump in Bitcoin Price and Possible Cause
A -10% correction in Bitcoin’s price could have substantial implications due to its prominent position in the cryptocurrency market and its interdependency with various altcoins. This correction would decrease BTC’s market capitalization by approximately $138 billion, bringing the total market capitalization down to $865 billion. The potential slump in price can be attributed to the absence of FOMO (fear of missing out) despite Bitcoin’s remarkable price increase of 74% over the past four months. Investors may be expecting further price increases, leading to a lack of new greed within the space.
Bitcoin Price Chart
Currently, Bitcoin is trading at $51,023, reflecting a decline of -3.39% over the past 24 hours. This adds to the losses sustained throughout the week, totaling -1.26%. Despite these recent declines, technical indicators still grant Bitcoin a ‘buy’ rating based on 13 evaluations. Moving averages are even more optimistic, signaling a ‘strong buy’ rating in 12 instances. Oscillators indicate a ‘neutral’ rating in 8 cases. Only time will tell if the TD Sequential indicator’s sell sign proves accurate or if Bitcoin defies it and reaches new highs.
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