Is BTC Price Due for a Correction? Will Bitcoin Halving Fail to Maintain the Bullish Momentum?

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Written By Pinang Driod

Ever since the BTC price has risen above the pivotal support zone between $63,250 and $66,580, the bulls are trying hard to keep up the levels above $70,000. However, the bears appear to have capitulated to these levels and as a result, the token is facing significant upward pressure after surpassing the levels. Having said that, will the upcoming quarterly close and the Bitcoin halving not have any impact on the rally? Will the BTC price fail to reach $100K this year?

With just 25 days away from the halving event, the market participants expected the token to undergo a pre-halving rally. While the price marked the highs close to $74,000, the pre-halving rally was expected to reach $75,000 or slightly above. However, the token since then has been facing notable bearish pressure, which is preventing it from holding above $70,000. This could be a signal that the BTC price is heading towards a fresh bearish spell. Here are the reasons why a correction could be on the horizon. 

The long-term traders who held BTC for over 3 to 5 years have begun to bring back their holdings on the exchanges. The BTC spent output age bands for the year range have plunged as traders have transferred nearly 90,000 BTC in the past few weeks. 

The Bitcoin Sharpe ratio, which shows the average return earned after shedding the risk associated with the token, has reached the higher risk area. Hence, it suggests a high risk for newcomers due to the recent price surge. Therefore, market participants need to gauge the volatility and market dynamics. 

The US buying activity has slashed after the BTC price marked new highs at around $73,800. Meanwhile, a rebound is expected by the middle of the year, which may be fueled by institutional investments and whale purchases. 

Regardless of all the facts, market sentiments continue to remain at 81 (extreme greed), indicating that traders are optimistic about the upcoming trend. However, a final plunge within the lower support zone may trigger a healthy upswing and lift the Bitcoin (BTC) price beyond the recent highs. 


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