Crypto markets were lower on Wednesday afternoon as the expected post- halving pullback arrived, with Bitcoin experiencing a rapid sell-off and briefly falling below $64,000.
Bitpush data showed that after rising to the $66,500 support level in early trading on Wednesday, Bitcoin bearish sentiment intensified and fell to a low of $63,560 in the afternoon, a 5.25% intraday fluctuation from the high of $67,080. As of press time, BTC rebounded above $64,000, down 3.5% in 24 hours.
Altcoin fell across the board. Most of the top 200 Altcoin by market cap posted negative returns on Wednesday. Among the rising Altcoin, Meme coin Bonk (BONK) stood out, up 12.6%, Algorand up 11.2%, and dogwifhat (WIF) up 6.8%. Gnosis (GNO) fell the most, down 13%, followed by Bittensor (TAO) down 10.5%, and SATS (1000SATS) down 9.6%.
The overall cryptocurrency market cap is currently $2.36 trillion, with Bitcoin’s dominance rate at 53.1%.
Secure Digital Markets commented: "This move comes against the backdrop of continued strength in the US dollar index and 10-year Treasury yields, suggesting that caution should still be exercised when dealing with risk assets. For Bitcoin to attract further bullish momentum, it will need to decisively break through the $67,500 level."
In traditional markets, U.S. stocks opened higher, but fell in the afternoon as traders worried about the economy and interest rates. As of the close, the Nasdaq rose slightly by 0.10%, the S&P was flat, and the Dow fell by 0.11%.
Bitcoin needs to remain at at least $60,000
“Bears have forced Bitcoin to new lows, pushing it below $60,000 in a matter of hours,” said market analyst Bloodgood in his latest update. “Lower lows on longer timeframes don’t bode well for bulls; however, we are seeing a hammer-like candle formation, which typically leads to bullish continuation.”
The analyst said: “Given that the halving takes place on a weekend, I expect the trend to reverse soon. If you look at the price action of previous halving events, you will find that the price always retraces 10-15% before or shortly after the halving event. After the pullback, we saw a few months of gains.”
Nonetheless, Bloodgood noted that “the daily timeframe is bearish. The series of lower lows and lower highs and declining volume means that further declines are possible in the short term unless something major happens. The level we must monitor is $60,000 because this is the level that must hold if we want to see gains.”
While this cycle has proven to be different from previous halving cycles, Bloodgood said he still expects a parabolic move to occur at some point in the next 18 months.
He concluded: “Crypto cycles have always been centered around halvings, and while things may change at some point in the future, there is still no reason to abandon a pattern that has proven so reliable from the beginning. This cycle is certainly a bit unusual (as ATHs don’t usually occur before halvings), but the default assumption should still be that the cycle is far from over.”
Market analyst Rekt Capital said Bitcoin is currently in a “re-accumulation range,” which “tends to form a few weeks before the halving” and “mostly forms after the halving.”
He said: “A few weeks after the halving, the range will be broken. The goal now is for Bitcoin to move sideways to ‘catch its breath’ and let the market calm down after the outstanding price performance before the halving.”
Rekt Capital noted that the re-accumulation phase “could last for weeks or even up to 150 days (or five months)”, which could result in “many investors who bought Bitcoin after the halving being eliminated from the market due to boredom, impatience and disappointment.”
Rekt Capital believes: “Once Bitcoin breaks out of the re-accumulation zone, it will break out of the parabolic uptrend (green), and it is at this stage that Bitcoin experiences accelerated growth and enters a parabolic uptrend. Historically, this stage has lasted just over a year (about 385 days), but because an acceleration cycle may be occurring now, this number may be cut in half in this market cycle.”
Bluntz, a cryptocurrency analyst, said Bitcoin’s recent performance suggests that prices will continue to fluctuate sideways in the $64,000 to $67,000 range.
However, he also believes that Bitcoin “will break out soon” as the chart shows a bullish pennant pattern forming. According to the analyst, “once $67,000 is breached,” the entire market will rise to new highs above it.
Author: BitpushNews Mary Liu
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