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After hitting a low of about $56,800 on Wednesday, Bitcoin rose more than 10% over the weekend, reversing early losses and topping the benchmark $64,000 mark.
New inflows into US physical Bitcoin exchange traded funds (ETFs) during Friday's trading session, particularly the first inflow into the Grayscale Bitcoin Trust, acted as a positive catalyst for Bitcoin's price movement.
The tragedy early in the week took much of the confidence out of the crypto market. However, similar to Bitcoin's recovery, investor confidence appears to have returned over the weekend.
Market sentiment changed from “greed” last week to “fear” on Wednesday, remained neutral the following day and switched to “greed” over the weekend, according to Alternative's Fear and Greed Index.
Despite the uncertainty surrounding the current correction in Bitcoin value, this period has historically provided favorable buying opportunities. Moreover, some analysts believe that Bitcoin is poised for a significant price increase.
Ki Young Ju, CEO of CryptoQuant, reported on Friday that Bitcoin whales have accumulated over 47,000 BTC. This accumulation suggests that the recent price correction that took Bitcoin below the psychological mark of $60,000 is being viewed by institutional investors as a buying opportunity.
#bitcoin Whale has accumulated 47K $BTC Within the last 24 hours. We are entering a new era. pic.twitter.com/SXgzToN8GU
— Ki Young-ju (@ki_young_ju) May 3, 2024
Technical analyst Recto Capital noted that historically Bitcoin has experienced a brief “danger zone” after a halving before continuing its upward trend. He sees the 49-day correction, the longest of this correction cycle, as a harbinger of a potentially bullish surge in values from mid-September to mid-October 2025.
In the 2015-2017 cycle, Bitcoin peaked 518 days after the halving
In the 2019-2021 cycle, Bitcoin peaked 546 days after the halving
If history repeats itself and the next bull market peak occurs 518 to 546 days after the halving…
That means Bitcoin could peak this cycle… pic.twitter.com/iqRn2z0PcD
— Rect Capital (@rektcapital) May 4, 2024
Bitcoin could stabilize between $60,000 and $70,000 until August
BitMEX founder Arthur Hayes said in a recent blog post that the market is expected to continue to grow, especially after temporary market pressures such as US tax season, speculation surrounding Fed interest rate decisions, the Bitcoin halving, and ETF demand subside. We expect Bitcoin to regain momentum as the situation improves.
Hayes suggested that “stealth money printing” and policy coordination between the Federal Reserve and the U.S. Treasury would make non-fiat assets like Bitcoin more attractive. He predicts the price of Bitcoin will rise above $60,000 and then stabilize in the $60,000 to $70,000 range until August.
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