- Bearish sentiment maintained its dominance in the Bitcoin market
- King Coin could fall to $64,000 before another rally
Bitcoin [BTC] recorded There has been a sharp price correction in the last 24 hours due to the collapse of traditional markets and geopolitical uncertainty. The timing is important here, especially as BTC awaits the next halving in less than a week.
However, investors should not lose hope as there is a possibility that the cryptocurrency could soon bounce back on the charts.
Bitcoin's chart turns red
Accordingly CoinMarketCap, The price of Bitcoin has fallen by more than 5% in the last 24 hours. At the time of writing, it was trading at $67,241.90 and had a market cap of over $1.32 trillion.
The price drop made BTC a topic of discussion in the crypto space, which was also reflected in the increase in its social volume. However, the weighted sentiment chart reached the negative territory, meaning that bearish sentiment maintained its dominance in the market.
Source: Santiment
However, the above correction could just be a deception.
Captain Faibik, a popular crypto analyst, recently shared a tweet Highlighting an interesting update. Accordingly, the price of BTC is still moving within a bull pattern. A successful breakout above the pattern could see BTC reach a new ATH in the coming weeks. However, before that happens, there is a possibility that BTC price could fall back to $66,000.
Will BTC recover soon?
A look at Bitcoin metrics by AMBCrypto revealed that BTC could fall further in the short term.
Our analysis of CryptoQuant Data highlighted that the net deposit of the cryptocurrency on exchanges was high compared to the average of the last seven days. Foreign exchange reserves also rose – a sign of high selling pressure.
Source: CryptoQuant
Additionally, Bitcoin’s aSORP was red, meaning more investors were selling for a profit. Additionally, BTC’s net unrealized gains and losses (NULP) suggested that investors were in a “faith phase” where they were in a state of high unrealized gains. All of these metrics pointed to a further downward trend.
According to our analysis of data from Hyblock Capital, BTC price could soon reach $66,000 or $64,000 if the downtrend continues. Once BTC reaches this level, the chances of a quick recovery are high as BTC tests the bull pattern that has formed on its chart. However, if Bitcoin fails to test the pattern, investors might as well expect BTC to fall to $57,000.
Source: Hyblock Capital
To read Bitcoins [BTC] Price prediction 2024-25
The halving effect
Although several metrics signaled bearish signals, Bitcoin has a trick up its sleeve that can help turn the situation on its head. The king of cryptos is waiting for its next halving in just under a week. The halving will cause the issuance rate of BTC to decrease. This drop could lead to an increase in BTC demand and help drive up the price.
Additionally, the event may also fuel bullish sentiment around the coin, which may contribute to BTC’s recovery in the coming days.
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