Global influences have had a huge effect on fiat currencies and cryptocurrencies, with markets resulting in a sharp decline in Bitcoin values. The present trading scenario has pushed the value of Bitcoin to decrease, suggesting that a bearish sentiment persists in the market. This trading scenario does not bode well for buyers, as no upward movement can be anticipated in the near future. This is due to various market conditions being influenced by heightened selling pressure stemming from these global influences.
With the halving just 3 days away and the Iran-Israel war breaking out, there has been a substantial hit to the Bitcoin prices.
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The hitting lows are in the bracket of $61,000 and $62,500 over the days, indicating a lack of strength from the bullish side. As a result, there is anticipation that a significant pullback may be possible by the bears; if the price drops below the support level and fills the gap, it could lead to a 20% decrease in price, bringing it down to around $50,000.
Traders are, hence, advised to monitor the Bitcoin (BTC) price within 48 hours, as there might be a significant price movement before the halving event. In addition, the Bitcoin Fear and Greed Index has been hinting at a shift from the ‘Greed’ level of 74 down to 65, indicating that there are fewer chances for a rebound before the Bitcoin halving.
There has been a historical record of a subtle decrease in Bitcoin’s price as halving nears. This is called the Pre-Halving Retrace. Even as Bitcoin prices fall before halving, they rebound to an upward movement just a few weeks after the halving settles down.
However, in the past, the Bitcoin ETF and an impending war could not influence the price. Even as these factors are here to stay, Bitcoin ETFs popularity has placed Bitcoin’s price higher, constituting 55% of the $2.4 trillion virtual currency market by the end of last week.
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Therefore, it is safe to assume Bitcoin will make a comeback in just a few weeks post-halving.
