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The flagship cryptocurrency, Bitcoin, dropped beneath the $63,000 mark within the final 24 hours and is at present on a worth correction, having lately hit a brand new all-time excessive (ATH) of $73,750. This worth dip is believed to be attributable to a number of components, together with the Bitcoin Halving, which is quick approaching. 

Bitcoin Price Is In The Second Phase Of The Halving Trend

Crypto dealer and analyst Rekt Capital recently provided insights into the 4 phases of Bitcoin Halving, which offers a believable rationalization for Bitcoin’s current decline. He advised that Bitcoin was getting into into the ‘Final Pre-Halving Retrace,’ having simply concluded with the ‘Pre-Halving Rally.’

This ‘Final Pre-Halving Retrace’ is claimed to happen 28 to 14 days earlier than the Halving event. However, it seems to be to have come earlier this time round (identical to the Pre-Halving Rally), with the Halving nonetheless about 30 days away. Rekt Capital alluded to the Pre-Halving retrace in 2016 and 2020 when Bitcoin pulled again by 38% and 20%, respectively. 

Bitcoin has already pulled again over 11% prior to now week. Interestingly, the analyst famous that this section of the Halving can final “multiple weeks and up to 77 days.” Rekt Capital, nevertheless, expects it to be a lot shorter than historical ones. He added that this yr’s Pre-Halving Retrace “would more likely be on the shallower side than on the deeper side.”

Long-Term Bitcoin Holders Are Taking Profit

Alex Thorn, Head of Research at Galaxy Digital, highlighted in an X (previously Twitter) post that long-term Bitcoin holders are beginning to promote. This is evidenced by totally different metrics, such because the motion in cash that had stagnated for over a yr. 

Crypto analyst Ali Martinez beforehand alluded to this wave of profit-taking, noting information from market intelligence platform Glassnode, which confirmed that these holding over 1,000 BTC had been more and more cashing out. This has additionally led to a 4.83% drop on this class of BTC addresses this previous few weeks. 

Thorn, nevertheless, sounded optimistic about Bitcoin’s future trajectory in his put up, noting that new whales are getting into (by means of the Spot Bitcoin ETF market) as some others are exiting. He additionally advised that a few of these whales aren’t precisely leaving the market however promoting their spot BTC and investing in Bitcoin ETFs as an alternative. 

Bitcoin Sentiment Is Currently Bearish

Data from Coinglass reveals that the bears at present have the higher hand, with nearly $82 million in long positions liquidated within the final 24 hours in comparison with nearly $23 million of shorts liquidated throughout the identical interval. 

There has additionally been a decrease in open interest on these exchanges, which means that merchants are selecting to remain out of the market in the meanwhile. Therefore, exercise within the derivatives market reveals that the present outlook for Bitcoin is bearish, with many nonetheless anticipating additional declines. 

At the time of writing, Bitcoin is buying and selling at round $63,000, down over 4% within the final 24 hours in accordance with data from CoinMarketCap. 

BTC bears reclaim management of worth | Source: BTCUSD on Tradingview.com

Featured picture from Analytics Insight, chart from Tradingview.com

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