Bitcoin falls nearly 15% a week before the Halving: Crypto analysis of April 16, 2024

As Bitcoin’s momentum was waning, its price underwent a downward revision, dragging the entire cryptocurrency market with it. Let’s analyze together the future prospects for the BTC price.

Bitcoin (BTC) Situation

While Bitcoin was in the midst of consolidating in the form of an ascending triangle, the cryptocurrency’s price rejected the $72,000 area. Indeed, it was from this level that BTC faced selling pressure, bringing its price by the end of the week slightly below the psychological threshold of $61,000. Note that this level has previously acted as support. Buyer interest appears to have been demonstrated again at this price level. Nevertheless, although it seems to be defended this Tuesday, April 16th morning, the short-term structure of the Bitcoin price remains bearish.

The price of Bitcoin now forms a double top. In principle, this pattern signals a potential reversal, at least in the short term. Nonetheless, the underlying trend of Bitcoin remains bullish, although BTC’s return below its 50-day moving average, coupled with a revised downward bullish momentum, casts doubt on the continuation of this trend.

The current technical analysis was conducted in collaboration with Elie FT, an investor and trader with a passion for the cryptocurrency market. Today a trainer with Family Trading, a community of thousands of independent traders active since 2017. There you’ll find Lives, educational content, and mutual aid surrounding the financial markets in a professional and friendly atmosphere.

Hypotheses for Bitcoin (BTC) Price

• If the price of Bitcoin manages to maintain above $60,000, we could anticipate a bullish continuation up to the level of $67,000. The next resistance to consider, if the bullish movement continues, would be $68,000 or even $69,000 and beyond. At this stage, this would represent an increase of more than 8.5%.

• If the price of Bitcoin fails to hold above $60,000, we could envision buyer interest support around $58,000. The next level to consider, if the bearish movement persists, would range within a price bracket around $57,000 and $56,000. At this stage, this would represent a decrease close to -11%. 

Conclusion

A week away from the Halving, Bitcoin has faced selling pressure that has pushed its price back. This can partly be explained by a complicated fundamental context on the macroeconomic and geopolitical side. Although the BTC market shows some resilience, indicating a maintenance of buyer interest, the mother cryptocurrency oscillates between bearish signals in the short term and an overall bullish trend. Thus, it will be crucial to watch closely the price reactions to different key levels to confirm or disprove current hypotheses. It is also important to stay vigilant for potential market “fake outs” and “squeezes” in each scenario. Lastly, remember that these analyses are based solely on technical criteria, and the price of cryptocurrencies can also evolve rapidly based on other more fundamental factors.