At the moment the sentiment is neutral and what is left to do is to refer to an analysis and try to figure out Bitcoin’s next movements.
Bitcoin price is trading at $51,160 recently and is slightly bearish since this Friday. In recent days, BTC has slowly moved away from the $52,000 level. Consequently, its price adopted some stability, which was good for several altcoins.
However, today there are downward movements that have reached $50,800, so it is legitimate to ask ourselves about the next direction its price will take.
The first impression is that the glare of the halving and the ETFs is passing, at least among investors, since the event has a large number of mentions in the media. However, we should not take anything for granted and that is why the technical analysis that we will carry out is important to avoid subjective judgments.
At the moment, approximately $3.6 billion in BTC options expire today. So this day is crucial to analyze the strength of the Bitcoin price at this point.
While this event is happening, we see that the 24-hour trading volume in BTC is 24,171 million, with a decrease of 6.7% in the last 24 hours.
In the case of ETFs, we see daily decreases in capital inflows. However, last week ETF trading volume increased to 1.2 billion. As of Thursday, ETFs recorded net inflows of $251 million.
Bitcoin Chart Analysis
Mixed sentiment is also seen on the Bitcoin price charts from oscillators and moving averages such as the RSI and MACD. The signals denote that the price will continue to move in a neutral zone in the short term.
The 20, 100 and 200 EMAs were positioned above the price in previous hours, which is a clear sign of neutrality and the slight decline that may increase.
However, they are still quite close to them, which denotes that there is still underlying strength on the part of buyers and that the possibility of the bullish outlook is viable.
Furthermore, as the price approaches the 50 EMA, we can test how strong the current level is and breaking below it could return BTC to the $50,000 level. In this case, the support level of $50,176 should be a reference, which serves as an area where there would probably be a rebound.
Meanwhile, $53,015 can be classified as an important resistance and its break would invalidate the aforementioned bearish perspectives. In this case, it could be projected to higher levels such as $55,000 and some analysts even mention $63,000.
How Far Will the Upcoming Halving Boost Bitcoin?
The halving is one of the columns that maintain the current stability in the price, since historically it has had a positive impact (although not always immediately).
Some analysts point out that the current $607 million that enters the Bitcoin network daily is part of the halving effect. Compared to the offer, this amount is 13 times larger. One aspect to consider is that it is not possible to know for sure if this will continue after the halving.
Other analysts point out relevant macroeconomic facts such as the position of the United States Federal Reserve regarding interest rates. Investors are waiting for a decrease in interest rates to enter Bitcoin and other cryptocurrencies.
This is a particular scenario, since the factors that previously boosted the price of the largest cryptocurrency today promote its neutral sideways trend.
By Leonardo Perez
