Bitcoin's technical landscape is hinting at a downward trajectory as we near the next halving, set to occur around April 18-20. The asset has repeatedly failed to breach the formidable resistance at $68,500, signaling a possible 'dead cat bounce' in formation. This bearish setup is further supported by the significant distance Bitcoin has created from its moving averages, indicating an overbought state ripe for a correction.
As we approach the halving, historical precedents suggest that volatility tends to spike, often culminating in considerable price pullbacks due to traders securing profits from the anticipatory run-up. Moreover, the confluence of the descending trend line and the halving event corresponds with a critical Fibonacci retracement level, adding to the bearish confluence.
In light of these factors, the prognosis suggests that Bitcoin may see a retraction to the $58,000 support level. Should this bearish momentum persist beyond the halving, a further descent towards the $52,000 support zone appears plausible as the market endeavors to find a new balance point amidst intensified profit-taking activities.
As we approach the halving, historical precedents suggest that volatility tends to spike, often culminating in considerable price pullbacks due to traders securing profits from the anticipatory run-up. Moreover, the confluence of the descending trend line and the halving event corresponds with a critical Fibonacci retracement level, adding to the bearish confluence.
In light of these factors, the prognosis suggests that Bitcoin may see a retraction to the $58,000 support level. Should this bearish momentum persist beyond the halving, a further descent towards the $52,000 support zone appears plausible as the market endeavors to find a new balance point amidst intensified profit-taking activities.