Bitcoin Price Correction: Will BTC Drop Below $40,000?
Jitters are spreading across the crypto community like wildfire raising questions about whether Bitcoin price will continue with the correction from its 2024 peak at $49,000 to below $40,000.
Short-Lived Trend After SEC Approval
There was a modest price increase after the Securities and Exchange Commission (SEC) approved a bunch of spot BTC ETFs but the short-lived trend fizzled out, leaving the coin spiraling below $42,000.
Bitcoin Eager to Consolidate Within Range
According to popular analyst Michaël van de Poppe, Bitcoin is eager to consolidate within the range high at $50,000 and the range low at $38,000 as the hype around the ETF fades away.
Impact of Bitcoin ETF in Coming Years
Despite the mundane price action after the approval, many analysts and experts like Bloomberg’s Eric Balchunas have pointed out that the Bitcoin ETF emerged as one of the best-performing launches based on net inflow and volume. Many believe that the impact of the ETF will be seen in the coming years.
Pressure is mounting on Bitcoin to sweep through lower levels below $42,000. The largest crypto holds below all three major MAs applied to the four-hour chart, compelling holders to stay on the edge not knowing whether to sell right away or hold on until BTC finally figures out the next move.
Support Band and Renewed Interest
Support in the yellow band will continue to play a vital role in Bitcoin’s technical outlook. A rebound from this area would raise the stakes for the bulls. This, coupled with renewed interest could create a suitable environment for an anticipated climb toward $50,000.
Moving Average Convergence Divergence (MACD) Indicator
Based on the Moving Average Convergence Divergence (MACD) indicator likely to send a sell signal, Bitcoin price is in danger of being accepted in the lower narrow range between $38,000 and $42,000.
Surging Exchange Inflows
Surging exchange inflows may further hamper Bitcoin’s performance. Data shared on X by James Van Straten highlighted a massive inflow of 86 BTC, the second-largest on Coinbase.
Bitcoin Halving and Increased Demand
Investors could be getting ready for the next major event — the Bitcoin halving. Miner rewards would be halved sometime in April, significantly reducing supply. The impact of the halving, which has historically led to parabolic price breakout in Bitcoin, is expected to be even more powerful if the BTC ETFs gain traction increasing demand.
Hot Take: Bitcoin’s Future Amidst Market Uncertainty
Bitcoin’s price correction and market uncertainty have raised concerns among investors. With the recent approval of BTC ETFs, there was hope for a price increase, but it was short-lived. Analysts believe that Bitcoin is eager to consolidate within a specific range as the hype around the ETF fades away. Despite this, experts point out that the Bitcoin ETF has been one of the best-performing launches based on net inflow and volume, with its impact expected to be seen in the coming years. As investors navigate through this correction and uncertainty, they must consider support levels, technical indicators like MACD, and factors like surging exchange inflows and the upcoming Bitcoin halving. The future of Bitcoin remains uncertain, but with the right strategies, investors can make informed decisions to maximize their returns.
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