Bitcoin: Potential Correction Despite ETFs And Halving
Bitcoin reached a new all-time high of USD 73,794, marking a +91% increase in just seven weeks. The new demand from Bitcoin spot ETFs drove prices sharply upwards, but a potential correction is typical before and around the halving. Sentiment and seasonality indicators suggest a short-term pullback, but long-term bullishness remains with a potential price target of USD 100,000 and higher.
Bitcoin (BTC-USD) is set to rise 8.8% on a weekly basis, as it recovered some lost ground and returned to the $70K mark over the week.
The world's oldest digital currency, kicked off the week on a bullish note, as it hit $69.9K, and has since been roughly stable, after a volatile last week, which saw market participants grow more cautious ahead of the highly-anticipated halving event next month.
On Thursday, BTC hovered near its record high on a day when, former cryptocurrency mogul Sam Bankman-Fried was sentenced for orchestrating the large-scale fraud and conspiracy that led to the downfall of his FTX crypto empire.
"The recent adjustment of Bitcoin price is pretty much finished. The profit-taking was temporary and the investors are still buying the dip and bullish on the long term of Bitcoin, especially for the halving event in April," said Lucy Hu, senior analyst at digital asset-based wealth management company, Metalpha.
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