Bitcoin‘s value has been wavering below a critical $70,000 mark since mid-March, sparking debates on its potential to reach the once-anticipated $100,000 target. Amidst these discussions, a notable crypto analyst, TradingShot, has postulated a substantial decline in Bitcoin’s price, predicting a drop below $60,000 subsequent to the forthcoming block reward halving, projected around April 20.
Market Correction Predicted by Technical Analysis
TradingShot, an anonymous figure in the cryptocurrency analysis community, presented his forecast on April 4 via TradingView, drawing from Bitcoin’s past market performance and Fibonacci retracement levels. He surmised that a market correction pulling Bitcoin down to the $58,000 – $60,000 range is likely, adhering to patterns witnessed in past downturns.
The analysis highlighted that Bitcoin has been climbing within a specific channel since hitting a low in November 2022, with each successive peak showing slightly diminishing returns. TradingShot suggests that this trend will result in a 2% reduction for the next peak, thus leading up to Bitcoin’s dip below $60,000 before a potential surge to $100,000 follows the halving event.
Macro-Economic Factors Influence Bitcoin’s Trajectory
External economic factors are also impacting Bitcoin’s price movements. The yield on US Treasury bonds reaching yearly highs and the strengthening US dollar have contributed to Bitcoin’s descent below $70,000. Intensifying concerns stem from persistent US inflation, prompting speculations that the Federal Reserve might postpone or reduce the expected interest rate cuts.
Investors, maintaining vigilance on Bitcoin’s performance, observe that its ability to stay above the $65,000 support mark could be pivotal, potentially triggering a climb towards $70,000. The cryptocurrency’s staying power at these levels is seen as a significant indicator of impending upswings.
Points to take into account
- Bitcoin may face a correction to $58,000 – $60,000 following historical trends.
- A decline below $60,000 is predicted before a rally post-block reward halving.
- US economic indicators, such as Treasury yields and dollar strength, are key to Bitcoin’s short-term pricing.
- The $65,000 support level is crucial for Bitcoin’s trajectory towards higher prices.