- Bearish sentiment maintained its dominance in the Bitcoin market
- King Coin could drop to $64k before another rally
Bitcoin [BTC] included a major price correction in the last 24 hours, a correction that can be attributed to the weakening 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 chance that the cryptocurrency will soon recover on the charts.
Bitcoin’s chart turns red
According to CoinMarketCapThe price of Bitcoin has fallen by more than 5% in the past 24 hours. At the time of writing, it was trading at $67,241.90 with a market cap of over $1.32 trillion.
The price drop made BTC a topic of discussion in the crypto space, and the same is reflected in the rise in social volume. However, the weighted sentiment chart entered the negative zone, meaning that bearish sentiment maintained its dominance in the market.
Source: Santiment
However, the above correction could only be a deception.
Captain Faibik, a popular crypto analyst, recently shared one tweet to highlight an interesting update. Likewise, the price of BTC is still moving within a bull pattern. A successful breakout above the pattern could lead to BTC reaching a new ATH in the coming weeks. However, before that happens, there is a chance that the price of BTC falls back to $66,000.
Will BTC recover quickly?
AMBCrypto’s look at Bitcoin’s metrics revealed that BTC could fall further in the near term.
Our analysis of CryptoQuant’s facts marked that the crypto’s net deposits on exchanges were high, compared to the average of the past seven days. Foreign exchange reserves also rose – a sign of high selling pressure.
Source: CryptoQuant
Additionally, Bitcoin’s aSORP was in the red, meaning more investors sold for a profit. Additionally, BTC’s Net Unrealized Profit and Loss (NULP) suggested that investors were in a “belief phase,” a phase where they were in a state of high unrealized profits. All these figures indicated a further downward trend.
According to our analysis of Hyblock Capital’s data, if the downtrend continues, BTC’s price could soon reach $66,000 or $64,000. Once BTC reaches that level, there is a good chance of a quick recovery as BTC tests the bull pattern that has formed on its chart. However, if Bitcoin fails to test the pattern, investors might as well see BTC drop to $57,000.
Source: Hyblock Capital
Read Bitcoins [BTC] Price prediction 2024-25
The halving effect
While several metrics showed bearish signals, Bitcoin has a trick up its sleeve that could help turn the situation upside down. The king of cryptos awaits its next halving in just under a week. The halving will lower the BTC issuance interest. This drop could result in an increase in BTC demand and help boost its price.
Moreover, the event may also fuel bullish sentiments around the coin, which could help BTC’s recovery in the coming days.