Bitcoin’s much-anticipated pre-halving rally towards the $100,000 mark has encountered a significant hurdle, as the cryptocurrency market experiences a wave of selling pressure. The recent price fall, which saw Bitcoin’s value drop by 6% on Tuesday and contribute to an 8% decrease over the week, has raised concerns among investors and analysts alike.
According to Coinpedia analysis, the market-wide sell-off has led to sellers dominating the short-term Bitcoin price trend, casting doubts on the sustainability of the pre-halving bull run. Despite the setback, Bitcoin managed to find a brief respite, achieving 1% intraday growth from the crucial $65,000 support level.
US Bitcoin Spot ETFs Inflow Offers Glimmer of Hope
Amidst the market turbulence, a daily net inflow of $40 million into US Bitcoin Spot ETFs has emerged as a potential source of optimism for Bitcoin’s recovery prospects. The influx of institutional capital suggests that some investors remain confident in the long-term potential of the world’s leading cryptocurrency, despite the recent price drop.
However, the road to recovery may not be smooth, as Bitcoin faces several technical challenges in the near term. The cryptocurrency recently tested and bounced off the $65,000 support level, indicating the presence of strong buying interest at this price point.
Negative Cycle Indicators and Dynamic Support Challenge
The appearance of two consecutive bearish candles on Bitcoin’s daily chart suggests the onset of a negative cycle, which could hinder the cryptocurrency’s upward momentum.
Furthermore, Bitcoin’s price is approaching the dynamic support at the 50-day Exponential Moving Average (EMA), which aligns with the 23.60% Fibonacci retracement level.
A breach of this critical support level could pave the way for further downsides, potentially exposing BTC to a more significant correction. A $357 million long liquidation event on Tuesday further exacerbated the bearish sentiment and set a cautionary tone for Bitcoin’s short-term outlook.
Bullish Flag Pattern Offers Hope for Trend Continuation
Despite the recent consolidation and correction, Bitcoin’s price action has formed a bullish flag pattern, hinting at the possibility of a trend continuation. If the pattern plays out as anticipated, Bitcoin could stage a rebound, potentially propelling prices beyond the $75,000 mark.
Moreover, some analysts remain optimistic about BTC’s post-halving prospects, with $100,000 still being considered a viable target once the halving event takes place. However, the path to this ambitious goal is fraught with challenges, and Bitcoin must navigate through several key resistance levels and overcome the current bearish sentiment.
While the bullish flag pattern offers a glimmer of hope, Bitcoin’s failure to maintain its position above the 50-day EMA could lead to a more pronounced correction. In such a scenario, the cryptocurrency may test the 38.20% Fibonacci retracement level at $60,289, which could act as a crucial support zone.