Bitcoin Correction Could Deepen - Bulls Eye $60k Level as Next Key Buy Zone

Bitcoin rally stalled above the key $70K level recently, indicating that the bullish exuberance has calmed down. Eventually, the cryptocurrency settled below the $67k level. This slowdown coincides with significant withdrawals of funds from digital currency exchanges and ETFs.

Since January, there has been a noticeable trend of funds moving out of digital currency trading platforms, with no sign of slowing down in March. On March 27 alone, we saw the third-largest outflow of funds in history, totaling 22,000 coins worth $1.54 billion.

Similarly, after a surge in ETF inflows since January 10, recent weeks have shown a reversal of this trend, reflected in the declining trading volume and a withdrawal of $931 million last week. Additionally, sizable long positions worth approximately $312 million were liquidated in early April, signaling a potential price drop toward $60,000.

As the Bitcoin halving approaches, there is growing speculation about its impact on the ongoing uptrend. Some believe that the impact may be limited this time due to the majority of coins already being mined. Approximately 93% of all coins have been mined, leading to the expectation of a weaker effect of the halving on prices compared to previous cycles.

Interestingly, despite the official halving yet to occur, Bitcoin's price has already reached new highs, deviating from historical patterns. This suggests that the market may have already priced in much of the expected movement during the current phase.

According to Grayscale's analysis, we are in the middle of a bull market, indicating the potential for further upward movement despite the halving being factored in.

At present, we're seeing a corrective scenario unfold, with the crucial level being around $60,000. This area acts as a demand zone, and past reactions from March this year indicate the potential strength of buyers in this region.

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If this indicated level fails to hold, the next target could be support around $53,000. However, if the corrective scenario is negated, we'll see a breakthrough of the resistance at the local peaks just below $73,000.

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Disclaimer: This article is written for informational purposes only; it does not constitute a solicitation, offer, advice, or recommendation to invest as such it is not intended to incentivize the purchase of assets in any way. I would like to remind you that any type of asset, is evaluated from multiple points of view and is highly risky and therefore, any investment decision and the associated risk remains with the investor.