Bitcoin is Ethereum founder wifecurrently facing substantial selling pressure, with prices retreating from the critical resistance level of $66,000. While some fear a drop below $60,000, potentially reaching $56,500 or even May 2024 lows, certain market observers remain optimistic about the long-term outlook.
Understanding Bitcoin's Post-Halving Correction
Market analysts note that the current downward movement aligns with historical patterns observed after previous halving events. Seasoned traders often view these dips as accumulation opportunities, anticipating a return to Q1 2024 highs and potential new price records in the future.
The daily chart reveals that Bitcoin's current behavior mirrors historical trends, particularly the period following the April 20 halving event that reduced miner rewards from 6.25 BTC to 3.125 BTC per block. This significant change has naturally impacted miner revenue streams and market dynamics.
Despite the 12% decline from the all-time high of $73,800, this movement fits within established market cycles. Historical data shows that Bitcoin typically experiences a pre-halving rally, followed by a post-halving correction, before entering a consolidation phase.
The remarkable price surge from $25,000 in October 2023 to record highs in March 2024 was partly fueled by anticipation surrounding the SEC's approval of spot Bitcoin ETFs, which began trading in January 2024.
Whale Activity and Market Sentiment
Following the halving event, Bitcoin experienced a 25% correction, bottoming at $56,500 in May. This was followed by a period of sideways movement with reduced volatility, characteristic of what some analysts call the "Boring Zone" in Bitcoin's market cycle.
Blockchain analytics from CryptoQuant indicate significant whale activity over the past two weeks, with long-term holders reportedly selling approximately $1.2 billion worth of Bitcoin. This substantial selling pressure, combined with outflows from spot Bitcoin ETFs, has contributed to the current market slowdown.
Market observers are closely watching to see if Bitcoin will follow historical patterns and enter the anticipated "Banana Zone" of upward movement after completing its current consolidation phase. The cryptocurrency's ability to maintain support above $56,500 will be crucial in determining its next major price movement.
