Crypto Daily: Massive Weekend Sales Ahead of Bitcoin Halving
In today’s session, Bitcoin presented again an unpleasant surprise for hodlers. Over the weekend, the price of BTC dropped 20%, leaving the world’s top cryptocurrency at the $8,000 mark. At the moment, the market is consolidating in the area of $8,600.
With the halving hours away, the only question is: what is next for Bitcoin?
Back on March 12, 2020, BTC dropped for a short period of time to $3,800, giving traders a great opportunity to jump in. The buying momentum extended into the range $4,000 — $5,000. After breaking above the $5,000 resistance level, BTC entered into a bullish corridor that stopped at $10,000.
Assuming that whales went long at the bottom of the range, their profits are already above 100%. The weekend massive sales (~ $1 billion) were most likely the result of profit taking across the market.
That said, it’s possible the Bitcoin Halving event is already priced in and prior effects displayed in the chart. For that reason, the likelihood of a post-halving drop is increasing by the minute.
Oscillators indicate strong oversold, and a slight increase to the $9,200 zone should occur in the coming days. However, entering a long position is now too risky due to market instability.
At this stage, buying doesn’t seem like a wise choice. Technical indicators show it might be too early to buy, especially without a clear direction following the halving. The current recommendation is waiting and buying within the area $6,800 — $7,600. However, if Bitcoin increases above the $10,000 psychological level, this scenario will no longer be valid.
Bitcoin Plunge Takes The Market Down
The bitcoin fall has greatly affected the entire cryptocurrency market, without exception. During the weekend, the capitalization of the crypto market decreased by $30 billion.
Bitcoin dominance has moderately weakened and it is currently testing the 0.5 Fibonacci. This shouldn’t surprise us considering that most traders closed their long positions ahead of the halving, moving their assets to stablecoins such as USDT or USDC (both available on the Crypterium Wallet). In the next few days, all eyes will point at Bitcoin, so we shouldn’t experience large variations in the dominance level.
Disclaimer: You should not construe any such information or other material as legal, tax, investment, financial, or other advice. Cryptocurrencies are risky and may not be suitable for all investors. Ensure you understand the risks involved as you may lose all your invested capital. The past performance of cryptocurrencies is not a reliable indicator of future results.
