- Bitcoin consolidated around a key psychological level at $70,000.
- Similar to November, things became quiet for long-term holders at the beginning of April.
Bitcoin [BTC] continued to see huge inflows into Exchange Traded Funds (ETFs).
In a Santiment post
BTC had a strong start to the week, gaining 4.8% for the day at press time.
The halving event is just around the corner and combined with the steady ETF inflows, a strong bullish move is expected across the market.
However, the immediate aftermath of the halving could still be turbulent.
This is why we could see a strong rally over the next six weeks
Source: CryptoQuant
Consumed production age groups showed subdued activity in age groups over a month since March 24 compared to the rest of 2024.
There was also a similar lull in spending between November 12 and 29.
While holders whose BTC was less than a month old were active, the older ones became quieter during this period.
November 30th saw a flurry of activity among 1-3 month holders as prices crossed the psychological $40,000 mark.
Therefore, it was possible that the recent calm period could be followed by a significant recovery in the near term.
The BTC consolidation phase could be extended even further
Source: CryptoQuant
Since mid-March, BTC has largely hovered between $64,000 and $70,000. However, during this period of consolidation, the 7-day simple moving average of foreign exchange outflow recorded a significant decline.
This does not mean that selling pressure increased. However, the rapid decline in outflows suggested that the consolidation was not accompanied by a buildup of centralized exchanges.
Uncertainty about the market’s reaction to the halving event could be one reason for this. Once the metric shows an upward trend, as was the case after December 18, 2023, further price increases can be expected.
Bulls eagerly await next high – will it be $80,000?
Source: Hyblock
The liquidation heatmap showed that the $75,000 area is a strong magnet for Bitcoin. The large number of liquidations in this region could attract prices before a bearish reversal occurs.
Alternatively, the $80.4k area could also be visited, which represents the next largest source of liquidity to the north.
Read Bitcoins [BTC] Price prediction 2024-25
All in all, the halving event immediately afterward presented a lot of uncertainty for traders.
Investors, on the other hand, would be cheering as metrics showed that further gains could be made after the market calmed down following the halving.
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers
Comments are closed.