BTC Price Down Despite Spot ETF Launch: Is It Preparing for the Bitcoin Halving?

The post BTC Price Down Despite Spot ETF Launch: Is It Preparing for the Bitcoin Halving? appeared first on Coinpedia Fintech News

With the sudden crash below $38,600, market participants were expected to trigger panic mode. Nevertheless, they smelled a good buying opportunity, which prevented the price from maintaining a steep descending trend. However, the bearish clouds have not disappeared completely, and the possibility of a reasonable recovery may also not cease. While the price is displaying a higher probability of a dual-price action, it is now important to catch the best action in play.

Ever since the BTC price faced rejection by the yearly highs at $48,969, the bulls have tried to trigger a fine recovery at regular intervals. However, the traders are required to be extremely cautious at this point, as the present rebound may not be considered a recovery. With the price remaining stuck within a descending range and forming constant lower highs and lows, an interim rebound cannot change the direction of the trend. Rather, it attracts immense bearish action, which may pave the way to form a huge bearish candle.

The recent price action displays that the price has been following a certain pattern ever since it barged to the local highs. The price falls by 5% to 6%, followed by a minor retracement, which results in another 5% plunge. Therefore, the ongoing marginal recovery may certainly result in a fresh descending trend as the RSI continues to remain bearish while the volume does not appear to be in bullish favour.

On the other hand, the Bitcoin halving is just a few months away, and at this stage, the BTC price usually consolidates. During the previous halving, the price had retraced by more than 50% a few months before the event. Hence, the ongoing bearish trend appears to be a normal process where the bulls are preparing to initiate a fine upswing and trigger a bull run after the halving.