Bitcoin price displays a dynamic outlook that suggests a potential bottom has been established. Key indicators to monitor include the impact of Bitcoin’s halving event and the adoption of exchange-traded funds (ETFs). Top analysts propose capitalizing on the profitability of short-term institutional whales as a means to potentially ride the current market trend. It is important to note that selling pressure is influenced by various factors, including market sentiments, macroeconomic conditions, whale activity, and regulatory policies, as previously highlighted in reports by Crypto News Flash.
The performance of Bitcoin and market sentiments play a crucial role in determining the trajectory of the world’s largest cryptocurrency, especially in the wake of the recent fluctuations following the halving event. Recent data suggests that market sentiments and whale activity are key factors influencing Bitcoin’s price. Short-term Bitcoin whales, who hold relatively modest unrealized profits compared to long-term holders, are raising questions as to whether the recent dip below $60,000 marks the local bottom for Bitcoin’s price.
In February, analysts speculated that the bottom for Bitcoin would be around $40,000 due to massive liquidation in the crypto derivatives market. However, market sentiment remained bullish despite volatility, and this prediction did not materialize. Currently, institutional investors and Bitcoin ETF holders are showing minimal unrealized profits, indicating a lack of selling pressure in the short term.
Analysis conducted by CryptoQuant reveals that short-term Bitcoin whales, who have held at least 1,000 BTC for up to 155 days, have only realized a 1.6% profit on their holdings. In contrast, long-term holders, known as old whales, who have held at least 1,000 BTC for over 155 days, have achieved an impressive 223% profit, suggesting a stronger conviction in their positions.
Although Bitcoin’s price temporarily dipped below $60,000 before rebounding, technical analysts point to the formation of a potential “double bottom” pattern as an indication of a possible reversal in the downtrend. Market sentiment remains neutral, with the relative strength index (RSI) resetting from overbought levels.
Arthur Cheong, the founder of DeFiance Capital, suggests that the recent pullback may have marked the local bottom for Bitcoin’s price and predicts further upward movement. Similarly, popular crypto trader Satoshi Flipper’s analysis indicates a potential target of $72,000 based on a breakout from a significant channel on the four-hour chart.
Despite the surge in institutional net inflows from U.S. spot Bitcoin ETFs turning negative leading up to the halving event, Denis Petrovcic, CEO and founder of Blocksquare, remains optimistic. He believes that sustained institutional interest and the reduced block rewards post-halving will contribute to Bitcoin’s price stability or even a slightly bullish trend.
As Bitcoin’s market dynamics continue to fluctuate and impact price based on institutional activity, technical indicators, and macroeconomic factors, market participants must remain vigilant. Assessing both short-term trends and long-term positions is crucial for navigating the volatility of the cryptocurrency market.
At the time of writing, Bitcoin is trading at $63,875.60, reflecting a 1.31% decrease in the past 24 hours, according to Marketcap data.