At the beginning of March, strategists at JPMorgan were dubious that Bitcoin, which hit a record high of $73,738 in March, would soon plummet, especially before the halving. There were legitimate worries that ETFs, which have grown popular in the stock market, would cause retail investors to flee cryptocurrency, which would cause a sharp decline below $50,000.
Before the impending halving, the cryptocurrency may have just experienced its final retreat. After peaking at $73,738 on March 14, Bitcoin has only experienced a 17 percent dip, closing at $61,494 on March 20.
This feat can be credited to Bitcoin whales and sharks, who, having held between 10 to 10,000 BTC, amassed 51,959 BTC on March 24 at an estimated value of $71,395 per coin, or roughly $3.4 billion. This accumulation amounts to 0.263 percent of the total supply that is currently accessible, collected in a single day. Analysts believe it is reasonable to assume that Bitcoin has already experienced its mini-winter before halving, given its significant comeback.
Furthermore, the ‘whale’ wallets might grow larger as the halving approaches, all while positively affecting the crypto market caps as a whole.
One possible explanation for the Bitcoin rebound could be the lower-than-average liquidations of short positions in the past 24 hours. This positively reflects that investors were uncertain about further price drops. Additional factors contributing to the rebound may include a decline in ETF outflows, a decrease in the value of Spot ETFs, and positive trends observed in trading analysis.
Given recent events in the crypto community, including the bankruptcy liquidations of Genesis and Gemini, various technical indicators suggest that sellers may be running out of steam. As a result, Bitcoin’s price has managed to stabilize and avoid further dips. Several analysts in the trading world have also confidently asserted that the future Bitcoin price is unlikely to drop below the resistance level of $60,000 shortly.
Some crypto analysts are cautious and have raised concerns about a possible major pullback before the halving, considering the past downturns that BTC has experienced in its previous market cycles.
However, market fragmentation and apprehensions are typical in a volatile market like cryptocurrency. The price movement of Bitcoin appears to be trading much higher than expected after a brief dip. Many analysts are optimistic about the potential breakthroughs Bitcoin may bring in the post-halving period as the financial year ends.
