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Bitcoin’s momentum wanes as bulls brace for impact

Bitcoin's momentum wanes as bulls brace for impact

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In this post:

  • Bitcoin’s price hit a recent high around $52,000 due to a surge in retail trading.
  • The cryptocurrency is facing its first weekly loss in over a month, currently down by 1.8%.
  • The enthusiasm is partly driven by the approval of Bitcoin spot ETFs and the upcoming halving event, which historically boosts its price.

Retail traders have kicked Bitcoin’s price up to a high around $52,000 recently. Now, though, it seems like the excitement might be cooling off a bit. This big crypto is looking at its first week in the red after more than a month of climbing.

As of the time of writing, Bitcoin had dropped about 1.8% for the week. If things keep going this way, it’ll be the first time Bitcoin hasn’t ended the week up since the rally started back in late January. A lot of the excitement came from retail investors getting really into the whole idea of Bitcoin spot exchange-traded funds (ETFs) and gearing up for the next “halving” event, which has pushed the price up by 25% in the last few weeks.

Some guys at JPMorgan said on Thursday that the price of BTC probably already has this halving thing baked in, even though it’s not happening until April. After shooting up towards $52k, Bitcoin’s price is now doing the sideways shuffle, making everyone guess what’s going to happen next. But it looks like a little dip might be on the way.

The daily chart shows Bitcoin has been in a pretty strong bull market, moving up in a nice, steady channel. This kind of movement shows that the buyers have been in control, aiming to push Bitcoin to new heights. This kind of movement shows that the bulls have been in control, aiming to push Bitcoin to new heights. But, hitting near $52k, Bitcoin ran into a big wall of resistance and has started to cool off.

This means we’re likely to see the price try to find some support, maybe around the middle of that channel or near the 100-day moving average at $43K. If it suddenly breaks through that channel, though, we could see a quick jump up.

Zooming in to the 4-hour chart, Bitcoin’s price action has been pretty quiet right around that $52K mark, with not a lot of ups and downs after a big rally.

This quiet time means bulls and bears are pretty much in a standoff, waiting to see who blinks first. If the sellers get the upper hand, we could see the price dip towards $48k, which lines up with the 50% spot on the Fibonacci scale.

But if the buyers start pushing, we might see an attempt to break past that tough spot at $58k. Keeping an eye on these key points and how the market moves will be key, especially since things could get shaky.

Even though we’re not seeing the crazy levels of activity like back in the peak days of 2021, the fact that these big investors are moving into Bitcoin is something to watch. It usually means that more regular folks might start jumping in too, igniting a possible shift in the market.

Disclaimer: The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

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