Bitcoin Faces Resistance, Pre-Halving Correction Anticipated

Bitcoin's attempt to reclaim its all-time high faces hurdles, with its price currently below $70,000. Bearish predictions suggest a pre-halving retrace, with analysts forecasting a potential drop to $59,000, $55,000, and even as low as $51,000-$53,000. Bitcoin remains within a bearish territory, requiring a move above $68,500 for bullish potential. Volatility and outflows from spot Bitcoin ETFs have contributed to the recent correction, leaving Bitcoin's price at a crucial juncture as it aims to regain the $65,000 mark.

Bitcoin Faces Resistance, Pre-Halving Retrace Anticipated

Bitcoin (BTC) has encountered obstacles in its recovery attempt, with its price currently hovering below the $70,000 mark. The asset's recent price action has prompted bearish predictions, with some market participants attributing the downturn to a pre-halving retrace.

Cryptocurrency trading expert Alan Santana, in a recent TradingView post, cautioned investors to prepare for a sell-off, citing Bitcoin's persistent bearish bias. Santana projected that Bitcoin's downward trajectory could continue over the coming days or weeks, with a potential bottom formation, accumulation, and reversal signals preceding any recovery.

Santana noted that Bitcoin has consistently traded above the exponential moving average 21 (EMA21) daily, indicating a bearish sentiment in the market. He forecasted that the next target for Bitcoin in the short term could be around $59,000, with a possible breach of this level expected. Subsequent support levels to monitor include $55,000, with a potential floor as low as $51,000-$53,000.

"It is important to remember that the initial decline could be rapid, with a potential loss of 20-30% that may not be recouped for 6-8 months," Santana warned.

Examining Bitcoin's short-term trendlines, Santana observed that the cryptocurrency remains confined within a bearish territory, indicating a prevailing negative sentiment among traders. For a shift towards bullish momentum, Bitcoin would need to surpass and close above $68,500, with a preliminary positive indication being a move above $66,666.

"For bullish potential to be considered, Bitcoin must move and close above $68,500," Santana emphasized. "Trading below $65,000 will maintain the bearish bias as we anticipate further price declines."

In recent days, Bitcoin has experienced heightened volatility, briefly reaching close to $60,000. Analysts have attributed this correction in part to overheated market conditions, labeling it a "pre-halving retrace." Market observers also suggest that the volatility may be influenced by outflows from spot Bitcoin exchange-traded funds (ETFs), which have seen consecutive days of money flowing out.

At the time of writing, Bitcoin was trading at $64,5700, with losses of almost 5% in the last seven days. Earlier in the week, Bitcoin briefly touched the $68,000 mark before correcting.

Bitcoin's price remains at a critical juncture as it faces the challenge of reclaiming $65,000. Continued trading below this mark would render it vulnerable to further losses, potentially below $60,000.