Bitcoin Price Continues to Decline

The price of Bitcoin has continued to decline amidst bullish predictions, with the price of the crypto asset currently trading at $62,570 as of the time of writing this report.

Following the post-halving event that occurred on April 20, 2024, which is usually heralded by a bullish move on BTC, the market has so far failed to gather the expected momentum to the upside.

Reports reveal that global tensions and US Department of Justice actions against crypto founders have fueled this decline, as well as apprehensions regarding China’s economic stability have added to investor concerns.

Also, the slump in the price of Bitcoin is exacerbated by slowed ETF inflows, as investors withdraw $218 million from Bitcoin ETFs amid sluggish US economic growth. The bulk of these outflows is reported to have stemmed from Grayscale.

Bitcoin remains bearish below the pivot point of $62,899, and a breakout above this level could signal a shift towards a more bullish bias, while a failure to breach could reinforce bearish sentiments in the market.

According to crypto analyst Michael van de Poppe, Bitcoin remains range-bound, indicating a potential for further downside movement. He suggests that the upcoming FOMC meeting on Wednesday could be influencing market sentiment, leading to a correction before the event. However, he notes that there might be a rebound afterward, fueled by hopes of potential rate cuts.

Also, veteran trader Peter Brandt, having analyzed historical data, argued that the exponential decay suggests that Bitcoin has already reached its cycle top of slightly above $70,000. This projection is based on a statistical concept that he describes as “exponential decay,” which is the process of reducing an amount by a consistent percentage rate over a period.

In his words,

“Bitcoin has historically traded within an approximately 4yr bull/bear cycle, often associated with the halving events. There have been three major bull market cycles since the initial bull cycle and each cycle has been 80% less powerful than its predecessor in terms of the price multiple gained.”

Nonetheless, Brandt indicated that the exponential decay only has a 25 percent chance of being successful.

Despite Bitcoin’s bearish sentiments and predictions, several other crypto traders have maintained that the price of Bitcoin will surge to the upside.

A similar stance was issued by Giovanni Santostasi, a popular Bitcoin trader and investor with a Ph.D in Astrophysics, who noted that Bitcoin price will rally as much as $210k by the end of 2025. Giovanni’s prediction entailed several scientific methods using the past few bull cycles after every Bitcoin halving.

Also, renowned economist Henrik Zeberg, predicts that Bitcoin (BTC) will reach $111,000 based on bullish indicators and historical patterns, potentially surpassing $200,000. Citing a combination of technical indicators and a bullish market structure, Zeberg points to historical data indicating that Bitcoin typically enters a parabolic phase after its monthly Relative Strength Index (RSI) surpasses the 70 mark.

As Bitcoin price continues to grind down, one week after the fourth halving, there are reports that short-term investors have been diversifying into the altcoin industry. The ETH/BTC pair, which is a popular indicator of the macro crypto cash ration, has signaled an alt season ahead. Furthermore, the pair rebounded over 4 percent in the past week.

However, there have been calls for investors to remain vigilant of a possible crash for altcoins in the coming months before the imminent rebound.