2024-03-15 20:04:37

#mindmeghalunk – we might say this was the leading article in the mainstream media at the end of the week following the Bitcoin exchange rate underwent a healthy correction.

A drop of just 9% was enough to instantly make Bitcoin headlines as a failed crypto. In fact, in addition to the rise that has been going on for weeks, I really needed a bit of a break.

The week’s most important cryptocurrency news in one place

Coinbase has announced plans to raise $1 billion in capital through the sale of convertible bonds during the cryptocurrency rally. This would avoid selling shares that would adversely affect the price and follow the strategy Michael Saylor uses at MicroStrategy.

Nigeria demands a Binance crypto exchange to release the names and transaction history of its top 100 Nigerian users to the government. The demand was made following the sixth week of detention by the Nigerian government Binance two high-ranking executives on charges of exchange rate manipulation.

After a six-week trial, a British court has ruled that Australian computer scientist Craig Wright is not Satoshi Nakamoto, the mysterious inventor of bitcoin. Wright has long claimed to have adopted the pseudonym and wrote a white paper on bitcoin in 2008, laying the foundation for the cryptocurrency. Since then, he has sued several developers for allegedly infringing his intellectual property rights. But the evidence that he is not Satoshi is “overwhelming,” according to the judge. Although cryptography’s biggest mystery remains unsolved, at least one suspect can be ruled out.

Bitcoin ETFs are sucking up the available Bitcoin, and the tipping point in supply dynamics may already occur this year. Bitcoin faces a sell-side liquidity crisis by September if the inflow from institutional investors continues. The X-in Ki Young Ju, the founder and CEO of on-chain analytics platform CryptoQuant, shared that a BTC supply liquidity crisis might arise within six months.

After a comprehensive investigation, he brought charges once morest 17 people charge the SEC because the CryptoFX company promoted unregistered investments and operated without broker registration. More than 12 million dollars were defrauded, mainly from Latin American investors. Even the site of the US Securities and Exchange Commission (SEC) shut down unexpectedly in the midst of the crackdown on pyramid schemes.

The price of Dogecoin, a meme coin inspired by the Shiba Inu dog, shot up following its big fan, Elon Musk, on March 13 He toldthat Tesla will one day accept Dogecoin as payment when visiting a Tesla factory.

Why is the price of Bitcoin falling?

It is difficult to pinpoint a single reason for Bitcoin’s sudden pullback, as the market is impacting BTC from multiple angles.

On the one hand, many crypto traders have now realized their profits following an extraordinary bull run that saw the price of Bitcoin increase by 175% in the last 12 months.

On the other hand, concerns regarding the broader uncertainty of the global economy and higher-than-expected inflation in the United States cast doubt on the hopes of an interest rate cut in the near future. The disappearance of the possibility of cheap money also affects the price of risky assets.

The long-awaited correction is here, but no one needs Bitcoin anymore on the cheap?

US spot Bitcoin exchange-traded funds, Bitcoin ETFs, hit one of the lowest net inflow levels on March 14. Just $132 million in new funds flowed into Bitcoin ETFs, the lowest level in eight trading days. Moreover, it is an 80% decrease compared to the day before on March 13.

Thursday’s decline was the second day in a row. On Wednesday, inflows reached $684 million, down 38.3% from March 12. In addition, let’s add that on Tuesday there was a record one-day inflow of $1.05 billion.

Meanwhile, during the week the BTC exchange rate showed a decrease of -5%, although investors might see a drop of up to 9% during a major drop.

Although 9% seems like a lot within a day, battle-hardened HODLERs don’t even get out of bed for this. In the history of Bitcoin, there have been many times a 2-digit drop within a day.

Let’s see why the pros are calm:

• The MACD is showing two golden cross patterns, indicating potential bull market momentum.
• The RSI is oversold, which indicates a possible buying opportunity.
• The market sentiment index currently stands at 83 points, which indicates extreme greed.

The BTC exchange rate thus experienced a decrease during the analyzed period, but the technical indicators point to a potential upward momentum. Traders should watch the support (67k) and resistance (69k) levels provided by the Bollinger Bands and consider the oversold pattern identified by the RSI.

Will this time be different?

Bitcoin’s next halving event is just weeks away. The moment when the growth rate of bitcoin supply is halved is expected to occur in April.

Comparing the current situation with previous halving cycles, each of which showed a significant price drop of nearly 40%, there are those who expect a fall even now before the event.

If we look at it compared to the local peak of $73,000, a 40% drop might bring the price of bitcoin down to $45,000. This level is a strong support anyway, because this is where the Bitcoin ETF rally started back in the fall.

However, it has been suggested that the emergence of US Bitcoin ETFs is emerging as a new factor compared to previous cycles.

Many people are now asking the classic question: will it be different now?

However, if you look more closely, every bull market in the past has had its own catalysts. And this did not at all stop the trend of cyclicality in the price of Bitcoin.

We also said this during previous cycles, that now everything will be different. Because:

• Saylor started buying Bitcoin
• Due to quantitative easing, free money appeared in the system
• Institutional BTC custodians have appeared
• Extra funds from venture capital funds have appeared through ICOs.

Every single time we said, now it’s going to be different. And was it different? No.

We are still BEFORE the halfway mark

Even though Bitcoin has already reached a new all-time high in 2024, we must not forget that we are still BEFORE its halving.

In the graph uploaded to X, Rekt Capital analyst compared this year with the behavior of the last half of 2020.

“Technically, Bitcoin is still in the pre-halving bullish phase (light blue),” he explained.

“However, Bitcoin may transition from the ‘Pre-Halving Rally’ phase to the ‘Pre-Halving Retrace’ phase, i.e. from rising to retreating (orange and dark blue circles). We are now on the threshold of transition”

Based on previous data, Bitcoin went through a pullback phase 14-28 days before the halving.

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#die #healthy #correction