“As the U.S. GDP growth and business activities slow down, the world’s largest cryptocurrency, Bitcoin, faced selling pressure earlier this week, falling below $65,000. As of the time of writing, the price of Bitcoin (BTC) is $64,256, with a market capitalization of 1.265 trillion U.S. dollars.
Bitcoin Price in a ‘Danger Zone’ Post-Halving
Cryptocurrency analyst Rekt Capital expressed concerns about the potential ‘danger zone’ for Bitcoin following its recent halving event. Rekt Capital compared the current situation with the historical trend of 2016, highlighting a significant downward shadow of about -11% that occurred around 21 days after the halving, followed by an upward reversal.
Currently, six days have passed since Bitcoin’s halving, and there is attention on the possibility of downward fluctuations near the low end of the reaccumulation zone. Rekt Capital warned that if history repeats itself, this downward fluctuation could manifest within the next 15 days, which is the ‘danger zone’. Although this period will end after 15 days, according to historical analysis, there is still a possibility of downward fluctuations to the low end of the range at $60,600 during this time.”
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“Bitcoin’s predicament continues as it faces rejection at the $65,600 resistance level, failing to establish it as support. For several weeks, the price of Bitcoin has been on a downward trajectory, approaching the liquidity pool near $60,600 (marked in green).
On the other hand, Bitcoin critic Peter Schiff believes that the $60,000 support level will not hold, and the price of Bitcoin will move to even lower levels.
The crash in tech stocks puts pressure on Bitcoin
The downturn in Bitcoin coincides with a slump in major U.S. tech stocks, triggered by weaker-than-expected revenue forecasts reported by Meta Platforms Inc. Following Meta’s 15% drop in after-hours trading, industry giants Microsoft Corporation and Alphabet Inc. also fell by 2% and 3%, respectively.
Traditionally, the trajectory of Bitcoin has often mirrored that of U.S. tech stocks, as both sectors are typically seen as high-risk, high-reward investment avenues. However, this correlation has weakened earlier this year, especially with the launch of spot exchange-traded funds in the U.S., which led to an outstanding performance in Bitcoin’s price.
Nevertheless, amid an uncertain macro landscape, Bitcoin ETFs have seen net outflows, and the overall flow has shown a significant deceleration trend. Thursday’s GDP report fell short of expectations, putting the Federal Reserve in a difficult position and limiting its future options. The impact of this data has led investors to question the possibility of the Federal Reserve cutting interest rates in 2024, thereby reducing expectations.”
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