The Post-Halving “Danger Zone” and Bitcoin’s Price Performance

The Post-Halving “Danger Zone” and Bitcoin’s Price Performance

The halving event on April 19 brought about a puzzling performance in the price of Bitcoin. Initially, BTC saw a significant gain of nearly 10%, reaching as high as $67,020 on April 24. However, in the following days, the digital asset experienced a decline of 6.49%, dipping below the $63,000 price mark. This negative performance has garnered attention from investors and market speculators alike.

After the recent price fall, renowned analyst Rekt Capital shared insights into Bitcoin’s current situation. In a post on April 26, Rekt Capital discussed the concept of the Post-Halving “Danger Zone.” This period typically sees price corrections in Bitcoin following the halving event. Drawing from historical data, Rekt Capital pointed out that in 2016, Bitcoin experienced price retracements in the three weeks after the Halving, with a recorded decline of 11%.

Rekt Capital’s analysis suggests that Bitcoin is currently in the Post-Halving “Danger Zone” of the current bull cycle. The analyst warned that if Bitcoin follows past patterns, the token could potentially drop to $60,000. However, Rekt Capital also mentioned that if such a scenario were to unfold, it would likely happen within the next two weeks.

At the time of writing, Bitcoin is trading around $62,672 with a 2.44% decline in the last day, further emphasizing its negative performance over the past month, with a loss of 11.16% of its market value. Data from SoSoValue revealed that the Bitcoin Spot ETF market saw net outflows amounting to $217 million on April 25. Notably, Grayscale’s GBTC accounted for $138 million of these outflows, bringing its total outflows close to $17 billion.

Other ETFs, such as Fidelity’s FBTC and Valkyrie’s BRRR, also experienced net outflows for the first time, with $22 million and $20 million respectively. Similarly, ARK Invest’s ARKB and Bitwise’s BITB witnessed a decline in investment on Thursday. Interestingly, all other Bitcoin Spot ETFs showed zero net flows, except for Franklin Templeton’s EZBC, which saw a net inflow of $1.87 million. The BTC spot ETFs currently have a combined value of $128 billion, reflecting significant growth since their trading debut in January.

It is essential to note that the opinions shared in this article are for educational purposes only and do not represent the views of NewsBTC on investment decisions. Investing in cryptocurrencies carries inherent risks, and individuals are advised to conduct their own research before making any investment choices. Any information provided on this website should be used at the individual’s own risk and discretion.

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