Bitcoin Price Outlook: All eyes on BTC as CNN calls halving the ‘World Cup for Bitcoin’
- IMF has published a report on the intensity and widespread nature of BTC transactions.
- BTC halving is out barely three days, with CNN calling the event the ‘World Cup of Bitcoin’
- Bitcoin price has closed above the $60,000 threshold for 49 days in a row as bulls defend against further downside.
- BTC collected some liquidity below $60k, but not all, increasing likelihood that we see another leg down to $57,000 to $59,000.
Bitcoin (BTC) price remains the focus of traders and investors ahead of the halving, which is an important event expected to kick off the next bull market. Amid conflicting forecasts from analysts, an international media site has lauded the halving and what it means for the industry.
Also Read: Why crypto may see a recovery right before or shortly after Bitcoin halving
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: CNN calls halving the ‘World Cup for Bitcoin’
Bitcoin price continues to defend against further downside as the markets watch the clock for the BTC halving, which is expected on April 20. Reports show that the number of “halving” searchers has increased to an all-time high.
JUST IN: Google searches for "#Bitcoin halving" is at an ATH pic.twitter.com/MgoyYsEUyY
— Bitcoin Magazine (@BitcoinMagazine) April 18, 2024
It comes as the countdown climaxes, out less than 36 hours with only 199 blocks remaining, according to data on CoinGecko. Amid the hype, with traders expecting that this event will kickstart the next bull cycle, CNN says the “halving is the World Cup of Bitcoin.”
JUST IN: CNN says the halving is the "World Cup" for #Bitcoin pic.twitter.com/dhfeQ8cehc
— Bitcoin Magazine (@BitcoinMagazine) April 18, 2024
Elsewhere, the International Monetary Fund (IMF) has published its Global Financial Stability Report detailing how Bitcoin is widespread and its transactions are intense. The report also indicated that BTC disrupts the world order, enabling sovereignty amid sanctions, adding that it demands regulatory action.
An excerpt in the report highlights:
Strengthening macroeconomic policies is necessary to fend off cryptoization risks.
Key subjects in the report include:
- Bitcoin as a means to avoid sanctions
- The fragmentation of the old payments and banking infrastructure
- A global call to action for the regulation and control of assets such as Bitcoin to help prevent further systemic degradation
At the same time, data shows that effective selling pressure on Bitcoin from traders is reducing as unrealized profit margins drop to zero.
Bitcoin selling pressure from traders may be declining as unrealized profit margins are basically zero now.
— Julio Moreno (@jjcmoreno) April 18, 2024
Traders' realized price (pink line) has acted as support for prices during a bull market and it's now at ~$60K. pic.twitter.com/rQbxKQ3W1T
With this, there is a significant chance Bitcoin price will bounce above $60,000 for some relief.
Technical analysis: Bitcoin price could produce another bounce
Bitcoin price has closed above the $60,000 threshold for 49 days in a row, suggesting the bulls are defending this base. With selling pressure reducing, the pioneer cryptocurrency could be primed for a bullish move. The 4-hour timeframe shows a bullish divergence on the Relative Strength Index (RSI), which is recording higher lows while BTC price records lower lows. This is a recipe for a bullish reversal as it hints that the downtrend is losing momentum and a potential reversal to the upside may be imminent.
The Awesome Oscillator (AO) is also showing green histograms that are edging toward positive territory. Moreover, the Moving Average Convergence Divergence (MACD) has flipped above the orange band of its signal line, hinting at a bullish cycle in the works.
If the move north sustains, two levels will be of interest. A close above $67,818 and ultimately $71,345 would set the tone for an extension that could see Bitcoin price record a new all-time high.
BTC/USDT 4-hour chart
On the other hand, the area between $57,000 and $59,005 is critical because of the liquidity that remains uncollected from the March 5 low of $59,005. As such, there is also a chance we could see a drop into this range before a decisive move to the upside.
Author
Lockridge Okoth
FXStreet
Lockridge is a believer in the transformative power of crypto and the blockchain industry.
