• Bitcoin price remains below $63,000, distancing itself further from $73,777 all-time high.
  • BTC whales cling firmly to their holdings despite a month of market dips.
  • Halving is out four days, expected on April 20, causing increased anticipation and speculation in the market.

Bitcoin (BTC) price is edging lower as markets count only days to the halving. Nevertheless, the dump has not shaken the faith of large holders as they continue to cling to their holding even after a month of steady dumps.  

Also Read: Bitcoin bull plans thwarted by US Dollar rally

Bitcoin, altcoins, stablecoins FAQs

Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.

Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.

Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.

Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.

Daily digest market movers: Increased demand and speculation before Bitcoin halving

Bitcoin price continues shedding after slipping below an ascending trendline. It is in the lower section of a market range measured between $60,678 and $73,777, where selling pressure climaxed and buying pressure peaked respectively.

However, despite the ongoing dump, large holders are not selling, with Santiment researchers reporting that the whales continue to hold onto their coins. Specifically, they choose to block out all manner of FUD.

It comes as the countdown to the halving continues, slated for April 20, which is only four days away as only 500 blocks remain. Reports indicate that Google searches for “halving” are skyrocketing.

Typically, in the days leading up to and on the day of the halving, there is increased anticipation and speculation in the market. In some instances, BTC price has increased significantly before or after the halving, driven by increased demand and speculation. Already, the implied volatility for April expiry surged by 13% over the weekend, moving from 62% to 75%. This suggests a short-term price turbulence ahead.

In the same spirit, analysts such as @CryptoCapo_ urge traders to brace for a sell-off that will see Bitcoin price drop below $60,000, where the pioneer cryptocurrency could establish a potential local bottom.  

Traders are also increasing conversations about “BTC and the viability of holding through a potential extended correction past the halving,” Santiment reports. 

BTC, fiat discussions post-halving

With altcoin sectors such as AI, gaming, DeFi, memecoins, and others shedding significantly, mainstream attention will continue to grow in favor of BTC and fiat liquidations amid growing FUD.

Technical analysts: Bitcoin price outlook amid growing FUD

Bitcoin price downside momentum continues to grow after breaking below the ascending trendline. The nose-diving Relative Strength Index (RSI) shows momentum is falling, accentuated by the position of the Awesome Oscillator (AO) in negative territory.

The DXY indicator is also climbing, putting downward pressure on Bitcoin price as investors move their funds into traditional safe-haven assets like the US Dollar.

Increased selling pressure could see Bitcoin price drop to the bottom of the market range at $60,678. In a dire case, the downtrend could extend for BTC price to slip below the $60,000 psychological level to levels as low as $59,005, a liquidity collection for the intraday low of March 5.

BTC/USDT 1-day chart

On the other hand, if the bulls seize the opportunity to buy the dip, the ensuing buying pressure could send Bitcoin price north. A move above the ascending trendline, and effectively the 50% Fibonacci placeholder, would draw in more bulls.

Enhanced buying pressure above the aforementioned level could set the pace for a move above $69,000, before Bitcoin price can reclaim the $73,777 ATH. In a highly bullish case, the price could clear this range high to record a new peak above the $74,000 or $75,000 thresholds. 

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