As a top-performing crypto for the past decade, Bitcoin (BTC-USD) remains irreplaceable despite its volatility. Now, seeing 52% increase in 2024 and a whopping 83% surge over the past six months, it’s clear that BTC’s long-term historical upside momentum is back in play.
Much of this recent rise has to do with the Bitcoin network’s recent halving event in April. This event halved the supply of newly minted BTC, providing greater stability for investors and an even lower inflation rate.
This halving came during the same year where the SEC approved spot Bitcoin ETFs, resulting in a surge in demand for the world’s largest token.
However, Bitcoin’s price action since its halving hasn’t followed historical patterns.
Typically, Bitcoin surges post-halving, and while a brief all-time high was made around the time of this token’s halving, Bitcoin still trades roughly 20% below the all-time high it made earlier this year.
Let’s dive into whether Bitcoin is still a buy following this price action.
Recent Bitcoin Price Movement
Bitcoin surged to around $63,200 during the European morning on Monday but dropped below $62,800 afterward. Attempts to surpass $64,000 this month were short-lived, suggesting a consolidation phase.
Ever since it reached new all-time highs in March, BTC has been through both lows and highs as selling pressures loom. This is also because of both long and short-term investors cashing out.
Some experts have warned that a dip below the $60,000 might also cause a sell-off. However, if it reaches $65,000, it could have bullish signs. Downward pressure is linked to miners selling assets and regulatory concerns.
Japanese firm Metaplanet, facing Japan’s high debt and yen instability, adopted Bitcoin as a reserve asset, acquiring 117.7 BTC ($7.35 million) since April.
Key $60,000 Support Level Worth Watching
Bitcoin began the week holding the $60,000 support, balancing bullish and bearish sentiment. Currently, BTC remains in a narrow trading range, with potential volatility ahead.
U.S. macro data and Federal Reserve Chair Jerome Powell’s commentary could significantly impact risk assets, with Bitcoin traders eyeing key levels amid the market’s correction hints.
Bid liquidity below $50,000 suggested a long-term market bottom, while short-term interest saw BTC/USD aiming to clear upside liquidity. Data showed minimal BTC/USD volatility, with $60,000 holding since May 3.
Analyst Mark Cullen highlighted a “bullish order block” below $60,000, noting its short-term significance. Losing this level could lead to revisiting lows, while holding it might drive prices to $64-67k.
CrpytoQuant Sees Bitcoin Rebounding
Following Bitcoin’s halving event, its price continued to fluctuate, prompting mixed reactions. Despite this, analysts maintained optimism for BTC’s current market cycle.
According to a CryptoQuant analyst, the Coinbase Premium trend, when it turns negative, could positively impact Bitcoin’s price.
This index reflects the percentage difference between BTC/USDT on Binance and BTC/USD on Coinbase Pro, offering insights into global vs. U.S. market trading behaviors.
Despite price fluctuations, BTC attracted more investors. Spot BTC ETFs boosted market inflows as well.
Bottom Line
Rekt Capital has recently suggested that Bitcoin likely hit its bottom at $56,000, marking the end of a 47-day retracement cycle.
BTC exited its distribution danger zone on May 6, surpassing $65,000, but faces resistance at $63,500 and $63,700. Breaking $63,700 would trigger liquidation of over $516 million in short positions.
Rather than adopting a bearish “sell in May” strategy, the recommendation is to remain optimistic about Bitcoin.
A rally could happen in the latter part of 2024, especially if the Fed will cut interest rates. The ETFs will be available in the U.S. and Hong Kong.
That said, Bitcoin could be more unstoppable in the international market. As more countries approve Bitcoin-related assets, investors worldwide should continue to hold onto their Bitcoin investments.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
