Bitcoin Navigates Uncertainty Ahead of Halving Event

Bitcoin Navigates Uncertainty Ahead of Halving Event

Apr 08 Tech Standard

Bitcoin's price has been on a rollercoaster lately, hovering around the $70,000 mark. This volatility stems from both short-term and long-term holders taking profits as the next halving event approaches.

While the price fluctuates, analysts at Bitfinex believe Bitcoin is entering a consolidation phase, with a range between $65,000 and $71,000. Maintaining support above $60,000 and $57,000 is crucial to prevent major corrections and sustain short-term momentum. This period of uncertainty presents a potential buying opportunity for investors seeking to accumulate Bitcoin through dollar-cost averaging strategies.

Interestingly, the gap between long-term and short-term holders is narrowing. Long-term holders, who have seen significant gains, are cashing in on some of their holdings. Since December 2023, they've sold about 900,000 BTC, with Grayscale Bitcoin Trust outflows contributing roughly 32% (286,000 BTC) of that figure.

However, this selling pressure is being offset by an influx of new short-term holders. This group has grown by 1.121 million BTC, with an additional 121,000 BTC coming from secondary markets and exchanges. This rise in short-term ownership highlights their active participation at higher price points and reflects the evolving dynamics of Bitcoin ownership, particularly with the increasing influence of institutional investments through spot ETFs.


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