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Crypto whales have continued to defend Bitcoin’s support level around $61K ahead of the fourth halving over the weekend.
The total cryptocurrency market cap has continued to shrink, down 2.4 percent in the last 24 hours to about $2.36 trillion, ahead of the much anticipated Bitcoin (BTC) halving 2024. After registering an impressive first quarter, JPMorgan Chase & Co (NYSE: JPM) analysts have now pointed out short-term weakness post-Bitcoin halving.
According to the JPMorgan note to investors on Wednesday, Bitcoin price will trigger another crypto landslide because the market is still in overbought conditions, based on the analysis of the Open Interest in BTC futures.
Bitcoin Whales Undeterred
According to on-chain data analysis provided by CryptoQuant, crypto whales have accumulated more than 27,700 Bitcoins, worth over $1.7 billion in the past few days. Despite the continued market dump by Grayscale Investments’ GBTC, on-chain data shows long-term investors are unwavering.
Furthermore, Bitcoin supply on a daily basis will be reduced from 900 to 450 coins after the upcoming halving. With the heightened Bitcoin demand from institutional investors, amid the halving impact, it is safe to assume a super cycle is at hand.
As Coinspeaker recently explained, the approval of spot Bitcoin and Ethereum ETFs in Hong Kong will significantly add to existing buying pressure. Moreover, the United States-based spot Bitcoin ETFs have already proved to be a huge success within the first few months.
Crypto Price Action Amid Bitcoin Halving
Bitcoin price has severally retested the support level around $61K in the past few weeks after reaching a new all-time high (ATH) last month. Already in the price discovery phase, Bitcoin dominance has been consuming the altcoin market in the recent past. According to the latest market data, Bitcoin dominance stands around 55.46 percent as of Thursday.
However, a popular crypto analyst Ali Martinez, opined that Bitcoin price must defend the support level of around $61k to avoid a capitulation towards the next major support of around $56,200.
$61,000 is a very important level for $BTC! If it breaks, it will trigger a correction to $56,200.
But if #Bitcoin can rebound, we could see an upswing to $66,500. The first sign of a rebound will be a sustained 4-hour candlestick close above $62,300. Until then, we brace for… pic.twitter.com/KOg4HuZOJ2
— Ali (@ali_charts) April 18, 2024
On the other hand, if Bitcoin price rebounds from the current levels amid the upcoming halving, a rally towards a new ATH will be inevitable.
On the Flipside
With the ongoing choppy crypto market, most traders have taken refuge from the high volatility in the stablecoins sector. According to market data provided by Coingecko, the stablecoins industry has a daily average trading volume of about $88.5 billion out of the $117 billion for the entire industry.
😧 According to the #crypto crowd, the #bullmarket has essentially come to an end after #Bitcoin's -16% market value drop since the #AllTimeHigh of $73.6K hit back on March 14th. At the same time, #bearmarket mentions are increasing. Historically, prices move the opposite… pic.twitter.com/1fnGePwMV0
— Santiment (@santimentfeed) April 17, 2024
Having analyzed the available data, market intelligence platform Santiment concluded that crypto traders have shifted from a bullish narrative to bearish sentiments. However, Santiment noted that the significant decline in FOMO (fear of missing out) combined with an increase in FUD is a promising indicator for an imminent crypto recovery.
