Bitcoin shakes off bears with weekend's recovery
Investor sentiment shifts from fear to greed as Bitcoin recovers to $64,000.
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Bitcoin has recovered early losses with an uptick of over 10% over the weekend, crossing the $64,000 benchmark after hitting a low of around $56,800 on Wednesday.
The renewed inflows into the US spot Bitcoin exchange-traded funds (ETFs) in Friday’s trading session, particularly the first-time inflows into Grayscale Bitcoin Trust, acted as a positive catalyst for Bitcoin’s price action.
The bloodbath of earlier weekdays took much of the confidence out of the crypto market. However, like Bitcoin’s recovery, investor confidence appears to have returned over the weekend.
According to Alternative’s fear and greed index, market sentiment turned from “greed” last week to “fear” on Wednesday, stayed neutral the next day, and switched to “greed” over the weekend.
Despite the uncertainty surrounding the current correction in Bitcoin’s value, this period has historically presented a favorable buying opportunity. Furthermore, some analysts believe Bitcoin is poised for a significant price increase.
Ki Young Ju, CEO of CryptoQuant, reported that Bitcoin whales had accumulated over 47,000 BTC on Friday. This accumulation suggests that the recent price correction, which saw Bitcoin fall below the $60,000 psychological mark, is viewed by institutional investors as an opportunity to buy.
#Bitcoin whales accumulated 47K $BTC in the past 24 hours. We're entering a new era. pic.twitter.com/SXgzToN8GU
— Ki Young Ju (@ki_young_ju) May 3, 2024
Technical analyst Rekt Capital noted that historically, Bitcoin has experienced a short “danger zone” post-halving before continuing its upward trend. He sees the recent correction, one of the longest in this cycle at 49 days, as a precursor to a potential bullish spike in value from mid-September to mid-October 2025.
In the 2015-2017 cycle, Bitcoin peaked 518 days after the Halving
In the 2019-2021 cycle, Bitcoin peaked 546 days after the Halving
If history repeats and the next Bull Market peak occurs 518-546 days after the Halving…
That would mean Bitcoin could peak in this cycle… pic.twitter.com/iqRn2z0PcD
— Rekt Capital (@rektcapital) May 4, 2024
Bitcoin could stabilize between $60,000 and $70,000 until August
In his recent blog post, BitMEX founder Arthur Hayes anticipates that Bitcoin will regain momentum as market conditions improve, particularly after the US tax season and other temporary market pressures, like speculation around the Fed’s rate decision, Bitcoin halving, and ETF demand, subside.
Hayes suggested that “stealth money printing” and adjustments to Federal Reserve policies and US Treasury policies increase the attractiveness of non-fiat assets like Bitcoin. He predicts that Bitcoin’s price will rally above $60,000 and then stabilize in the $60,000-$70,000 range until August.
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