Bitcoin price experienced a temporary dip below $60,000 just days before the highly anticipated Bitcoin halving event. However, despite this correction, many traders remain optimistic about the long-term price outlook for Bitcoin. This optimism is based on historical chart patterns and the influx of institutional investments.
According to popular crypto analyst Moustache, Bitcoin has reclaimed a key moving average indicator that has signaled the start of bull runs in previous market cycles. This indicates that Bitcoin may still be in a favorable position, despite the pre-halving “danger zone” it has been in since March 14.
Another crypto analyst, Rekt Capital, suggests that Bitcoin may already be entering a reaccumulation phase. This was mentioned in a video posted on X.
Following the recent correction, key technical indicators have been reset, indicating that Bitcoin is no longer overbought. The daily chart shows a drop from 58 to 41 on April 8.
The recent decline in Bitcoin price, which saw a decrease of over 7% in the past week, may be attributed to geopolitical tensions between Iran and Israel. However, John Patrick Mullin, CEO and founder of Mantra, believes that this drawdown is a healthy correction and that the overall outlook for the next 18 months remains bullish.
In addition to these factors, Bitcoin traders are optimistic due to the continued inflows from the 10 spot Bitcoin exchange-traded funds (ETFs) in the United States and the recent approval of spot Bitcoin ETFs in Hong Kong. These ETFs have seen significant net inflows since their launch, accumulating over 838,000 BTC, worth a total of $53.7 billion.
Although the post-halving period typically experiences short-term price stagnation, the approval of Bitcoin ETFs could potentially lead to a different outcome this time. Ivo Georgiev, CEO of Ambire, believes that this approval will contribute to Bitcoin’s price rally.
It is important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research and analysis before making any investment decisions.