In recent developments, Bitcoin has shown a significant downturn influenced by the underperformance of the newly launched spot Bitcoin and Ethereum ETFs in Hong Kong. Moreover, the upcoming US Federal Reserve decision on interest rates has cast a shadow of uncertainty over the cryptocurrency market. TradingShot, a noted analysis firm, highlighted Bitcoin’s monthly performance which may end April with notable losses, breaking its seven-month streak of bullish trends.
What Do Analysts Say?
The enthusiasm surrounding Bitcoin saw a notable rise in 2023, driven by significant events like the launch of the first US spot Bitcoin ETF and the anticipated halving event. TradingShot provided a detailed chart on April 30, emphasizing the potential implications of the monthly decline. It noted that Bitcoin has struggled to maintain its position above the $60,000 mark, and dropping below this threshold could lead to further substantial losses.
Historical Trends and Current Observations?
Historically, Bitcoin has shown resilience by briefly dipping during bull cycles, with the monthly charts typically displaying few red candles. The analysis pointed out that the only occurrence of three consecutive red months was in September 2019, following a surge due to the excitement around Bitcoin Libra.
Impact of the Bitcoin Halving?
The review further discussed the impact of Bitcoin halving events, which traditionally have led to bullish outcomes. Despite potential short-term corrections, the analyst remains optimistic about a recovery and possible positive performance by June, which could signal a resurgence in investor confidence and a return to a bullish market.
Insights and Projections
- TradingShot suggests buying during the current dip might be as advantageous as any point during the red monthly close, anticipating the last parabolic rally of the cycle.
- A positive turnaround could begin as early as June, potentially initiating a sequence of bullish months similar to past cycles.
At the moment, Bitcoin’s price stands at $61,300, with a 1.6% decrease over the last 24 hours and around a 9% decline over the past week. These figures underline the volatility and the speculative nature of cryptocurrency investments.