• 26 May, 2024
Markets News

Bitcoin Faces Decline Amid Descending Triangle and Halving Concerns

Bitcoin is currently facing a downturn, as highlighted in a recent X post by crypto analyst Rover. The analysis reveals that the BTC/USD pair is developing a descending triangle pattern, typically viewed as a bearish indicator. In recent weeks, Bitcoin has recorded progressively lower highs, as indicated by a declining trendline. 

Despite this, there is evident support at the horizontal line, with price levels stabilizing around the $63,000 mark. This pattern suggests a consolidation phase, where prices are attempting to hold steady despite downward pressure.

In another development, Crypto analyst Rekt Capital noted a potential post-halving “Danger Zone” for Bitcoin, reflecting on 2016 trends. The three weeks following the halving may see Bitcoin hit significant lows within the Re-Accumulation Range, marking a period of increased downside volatility.

Source: Rekt Capital

Historically, the cryptocurrency has dipped to the lower boundary of its re-accumulation phase during this time. This trend suggests a cautious approach for investors monitoring the market’s movements.

In a recent video, Crypto Rover delved into Bitcoin’s market dynamics following its drop below crucial support levels. The discussion centered on the implications of this downturn for Bitcoin’s future, specifically regarding the CME futures gap and a potential falling wedge pattern. Rover shared insights on setting strategic price targets and preparing for forthcoming trades based on current trends.

During the session, he emphasized the persistent negative sentiment among traders, reflected in the sustained negative funding rates. This scenario suggests that a majority are leaning towards short positions, often at a premium in a bullish market environment. Rovers highlighted this as a contrarian signal indicating potential upward movements due to the accumulation of liquidity above current price levels.

Furthermore, attention was drawn to the upcoming deadline for the Ethereum spot ETF, which is expected to impact the market significantly. According to Rovers, if approved, this could trigger a major bullish reversal in Ethereum, especially against Bitcoin. The analyst predicts a substantial influx of funds into Ethereum, mirroring the inflows seen with Bitcoin’s ETFs, which could further energize the market.

Bitcoin price is presently lingering under the $63,000 threshold. The cryptocurrency’s value is down by 2.57% at $62,035 over the past 24-hours. Market valuation has also witnessed a decline, sitting at approximately $1.23 trillion. Conversely, trading volume has seen a surge, spiking by 13.18%, and now stands at around $19.7 billion. The current circulating supply of Bitcoin is 93.77% of the maximum, equating to nearly 19.7 million BTC out of the capped 21 million.

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