July 20, 2024

CoinHirek

Learn More About Crypto and Earn

Why is Today’s Price of Bitcoin Lower?

2 min read

The price of Bitcoin has dropped 10% from its peak on April 2 due to the weakening positive momentum that drove the cryptocurrency to an all-time high of $73,835 on March 14.

The price of Bitcoin has decreased by more than 7% to begin the month of April.

Bitcoin is Currently in Its Typical Pre-halving Decline.

According to several observers, Bitcoin is currently in the pre-halving phase, which traditionally follows a particular pattern. The price of BTC seems to be following the five stages of the Bitcoin halving, just like in prior halvings.

The pre-halving drawdown is scheduled for 18 days prior to the anticipated April 20 Bitcoin halving date.

Rekt Capital, an independent analyst and cryptocurrency trader, stated on the X social network that the current price behavior is a pre-halving retrace. Prior to this, BTC had declines of 20% and 38% during the halving cycles of 2020 and 2016, respectively.

Liquidations of Bitcoin Increase

A close examination of liquidations indicates a significant shift in the Bitcoin futures market. The lengthy liquidations were timed to coincide with high volatility. On April 2, more over $115 million worth of long positions were liquidated in a 24-hour period. Within four hours, long-term Bitcoin liquidations surged to nearly $21 million the same day.

The price of Bitcoin suffers when traders do not exert buying pressure on long positions in the cryptocurrency. The daily activity of bitcoin trading volumes has decreased by more than $30 billion from its year-to-date peak of $45 billion on March 5.

The decline in exchange trading volume coincides with the ongoing pressure on the price of Bitcoin from spot sales.

Short-term Investors Increasing

Along with a more than 50% decline in trading volume from year-to-date highs, long-term holders are also collecting profits and reducing risk. It appears that the most recent Bitcoin buyers are speculative investors. The cohort of short-term holders has the largest supply of Bitcoin since July 26, 2021, which might cause the price of the cryptocurrency to continue declining.

Macroeconomic developments continue to have a direct influence on the price of Bitcoin to this day. It is also possible that additional regulatory actions, the halving of the cryptocurrency, and the monetary policy of the Federal Reserve will continue to have some impact on the price of Bitcoin.

Market players continue to anticipate a long-term price recovery for Bitcoin, particularly given the growing acceptance of BTC by financial institutions.

Leave a Reply

Your email address will not be published. Required fields are marked *

Copyright © All rights reserved. | Newsphere by AF themes.