Bitcoin faced a downturn in the market early today. The underperformance of newly launched spot Bitcoin and spot Ethereum ETFs in Hong Kong, coupled with the looming US Federal Reserve interest rate decision, seems to have plunged the market into uncertainty. What do analysts think about BTC price movements?
Analyst’s Bitcoin Commentary
The rise of Bitcoin in 2023 initially sparked great enthusiasm in the market. Due to generally trading in the positive zone, Bitcoin (BTC) might be on the verge of closing April with significant losses.
Potential losses could follow after a seven-month bullish price trend reflecting significant events like the launch of the first US spot Bitcoin exchange-traded fund (ETF) and halving.
In a review of BTC prices, TradingShot highlighted the significance of the monthly decline in a chart shared on April 30.
Especially during the price drop, it was noted that Bitcoin struggled to stay above $60,000 and a potential fall below this level could lead to larger declines.
The expert mentioned that historically, Bitcoin has only briefly dipped during bull cycles and the monthly view showed very few red candles facing investors, adding:
We only experienced three red months once during a Bull Cycle, which was in September 2019, but this was while correcting an abnormally early rise following the Bitcoin Libra excitement.
Bitcoin and the Halving Effect
In the analysis, it was emphasized that after every halving, Bitcoin produced five single red candles and twice double red candles. This pattern suggests that while investors prepare for a rise on the Bitcoin side, short-term corrections are also possible.
In a longer-term review, there might still be optimism for a recovery in the coming period. The analyst indicated that a return to the positive zone could be possible by June, potentially leading to another positive monthly performance outlook.
If June also turns red, like in December 2016, we could experience at least four consecutive green months. In any case, as BTC prepares for the last parabolic rally of the Cycle, buying now seems as good as any level during this red monthly close.
As of writing, BTC was at $61,300, representing about a 1.6% price drop over the last 24 hours. Over the past week, the cryptocurrency has seen approximately a 9% decline.
