Bitcoin’s price outlook suggests that a bottom has been established, according to analysts. Factors such as the impact of Bitcoin’s halving event and the adoption of ETFs are key indicators to watch. The selling pressure on Bitcoin is influenced by various factors, including market sentiments, macroeconomic factors, whale activity, and regulatory policies.
The performance of Bitcoin and market sentiments play a crucial role in determining the trajectory of the cryptocurrency. Recent data indicates that market sentiments and whale activity have a significant impact on Bitcoin’s price. Short-term institutional whales, who hold Bitcoin for shorter periods, have relatively modest unrealized profits compared to long-term holders. This raises the question of whether the recent dip below $60,000 is the bottom for Bitcoin’s price.
In February, analysts speculated that $40,000 would be the bottom for Bitcoin, but this prediction did not materialize. Despite volatility, market sentiment remained bullish. Currently, institutional investors and holders of Bitcoin ETFs are showing minimal unrealized profits, suggesting that selling pressure in the short term is low.
According to analysis by CryptoQuant, short-term Bitcoin whales have unrealized profits of just 1.6% on their holdings, while long-term holders have unrealized profits of 223%. This indicates a stronger conviction among long-term holders.
Technical analysts point to the formation of a potential “double bottom” pattern as a possible reversal in the downtrend for Bitcoin’s price. The relative strength index (RSI) has reset from overbought levels, indicating neutral market sentiment.
Arthur Cheong, founder of DeFiance Capital, suggests that the recent pullback could be the local bottom for Bitcoin’s price and predicts further upside movement. Popular crypto trader Satoshi Flipper shares a similar sentiment and predicts a potential target of $72,000 based on a breakout from a significant channel on the four-hour chart.
Although institutional net inflows from U.S. spot Bitcoin ETFs turned negative leading up to the halving event, Denis Petrovcic, CEO and founder of Blocksquare, remains optimistic. He believes that with sustained institutional interest and the reduced block rewards post-halving, Bitcoin’s price will remain stable or even experience a slightly bullish trend.
As Bitcoin’s market dynamics continue to fluctuate based on institutional activity, technical indicators, and macroeconomic factors, market participants are advised to stay vigilant and assess both short-term trends and long-term positions to navigate the volatility of the cryptocurrency market.
At the time of writing, Bitcoin is trading at $63,875.60, down by 1.31% in the past 24 hours, according to Marketcap data.