Bitcoin halving is just 48 hours away, stirring numerous rumors about short-term market movements and the direction of cryptocurrencies. Users continue to wait in uncertainty over whether a crypto market crash will occur. Meanwhile, last week saw significant liquidations in the crypto market due to macroeconomic factors.
How Much is Bitcoin Now?
Bitcoin‘s (BTC) price is trading at $61,255, while altcoins continue to sell off as the halving draws near. The halving is often called a precursor to potential price increases. However, some market analysts believe that this year, due to current market conditions and external factors, progress may be slower.
If the crypto markets move upward or even just trade sideways before the downturn, there are two signs that a crash could occur after Bitcoin’s halving.
Whale and Miner Movements
The actions of Bitcoin whales and the transactions of miners are known ways to follow the market’s direction.
This is attributed to the large amount of assets they control. If Bitcoin whales possibly withdraw BTC from central exchanges to their wallets, it could indicate an upward movement as it is likely interpreted that they will continue to hold for a long time.
On the contrary, movements towards exchanges can be interpreted as an imminent sale. This situation may not apply to crypto miners as they have the right to hedge assets to maintain mining capacity.
This trend was observed this year in the United States after the approval of spot Bitcoin ETFs, following which whales moved their assets.
Decreasing Transaction Volumes
The gradual decline in transaction volumes could indicate a decrease in market sensitivity during the bear market process. On-chain activities stagnate during a bear market, followed by recovery with net inflows and positivity.
In 2022, the crypto and decentralized finance (DeFi) market was shaken by significant declines in transaction volumes due to the dominance of the bearish outlook. This situation presents itself to investors as a crypto market crash scenario to watch out for after Bitcoin’s halving.
This situation can be indicated as another reason for a potential market crash after Bitcoin’s halving due to a possible turn to the negative.
RSI generally shows buying pressure compared to selling pressure and has a value between 0-100. A higher RSI value generally indicates an upward movement, while very high values could indicate a potential downturn in the process.
