Top Reasons Why Bitcoin Price Might Drop To $37K Before Halving

The post Top Reasons Why Bitcoin Price Might Drop To $37K Before Halving appeared first on Coinpedia Fintech News

On Thursday, spot Bitcoin ETFs started trading in the US stock market. They attracted over $4 billion in trades and caused changes in cryptocurrency prices. Bitcoin, which is now around $46,158, reached a new peak at $49,000 on Thursday when the new funds were launched.

Bitcoin has reached an important  resistance level in the current bull market, according to analyst Jason Pizzino. In a recent video, Pizzino opened up about the historical context of Bitcoin’s journey from its lows. 

Pizzino admitted the recent excitement around ETFs but suggests that the chart might be indicating a different story. The analyst stresses the significance of understanding market psychology, especially as Bitcoin approaches what he identifies as an intermediate point in the overall cycle. 

The analyst then delves into Bitcoin’s current situation, pointing out resistance levels around $48,000. He mentions early warning signs, such as a reversal bar with significant volume. While not predicting the end of the bull market, he suggests being prepared for a potential correction.

Looking at historical corrections, Pizzino outlines scenarios where Bitcoin price could pull back by 20-22%, indicating possible support levels around $37,000-$39,000. He also discusses the importance of Bitcoin holding above key previous tops at $45,000 and $46,000 for a sustainable bullish trend.

Ethereum Price

The analyst then spoke about Ethereum and its standout performance and resistance-turned-support levels. He outlines potential upside targets at $2,900 and $3,600 while discussing possible corrections of 20-30%. At the time of writing, Ethereum is trading at $2618, up by more than one percent.

Despite the dip, Bitcoin is still up by 10% since the beginning of the year. The trading of bitcoin also increased significantly on Thursday due to the debut of 10 new investment funds linked to the cryptocurrency on the stock exchange.