Bitcoin prices started trading on Monday at $51,350, and with the loss of significant volatility in Bitcoin prices, the markets have entered a clear state of chaos.
Here, I believe that the anticipated collapse mentioned in previous articles is imminent for BTC, or at least a significant price movement for short-term readjustment, so to speak.
However, this does not rule out the ongoing consolidation’s impact, which could lead to a rapid move towards the next key level at $60,000. Amid this chaos, let’s explore what might happen next with the Bitcoin price.
Currently, the Bitcoin price is trading between the weekly resistance level of $52,062 and the support level of $45,156 after a 37% rise in the last 28 days. Given the nature of this movement, it seems to me that a rebound is imminent.
This scenario is supported by the presence of a bearish price fractal, suggesting significant liquidity is expected in the next couple of weeks.
From my perspective, the approval of Spot BTC ETFs in the United States has marked a fundamental global shift in the Crypto market. Despite positive sentiments regarding Bitcoin adoption improvement, the largest source of Bitcoin ETFs in Canada, Purpose Bitcoin ETF, sold substantial amounts of Bitcoin during the week. Thus, buying Bitcoin is now more focused in the United States than in other regions like Canada, Germany, and Sweden, which have recently witnessed cautious Bitcoin purchases.
The United States has now surpassed Canada in Bitcoin ETF market share after the Securities and Exchange Commission approved exchange-traded Bitcoin funds. It has positioned itself as the leading country with assets totaling $34.78 billion across 10 exchange-traded Bitcoin funds, representing 83.3% of the global $41.74 billion immediate Bitcoin ETF market.
Despite all this, I do not anticipate further upward momentum in Bitcoin in the short term. Blackrock has significantly expanded its presence in the Cryptocurrency space, accumulating nearly 110,000 bitcoins for the iShares Bitcoin Trust (IBIT) exchange-traded fund.
With expectations that Bitcoin’s price could reach $100,000 by June of this year and after the anticipated halving event, it’s undeniable that the AI-backed cryptocurrency sector has seen a significant surge. Over $10 billion has been added to its market value in just 17 days, amid growing anticipation for the Bitcoin halving event, historically causing price fluctuations, including a drop before the event, which I believe is likely to happen again.
Over the weekend, something surprising and chaotic occurred in the crypto market as well. Emails purportedly from Bitcoin developer Satoshi Nakamoto appeared on Friday, thanks to Marty Malmi, one of the early contributors to the leading Crypto asset. These emails emerged during a legal battle in London involving Australian entrepreneur Craig Wright, who claimed to be Nakamoto, making his claims seem less credible.
The dialogue between Nakamoto and Malmi revealed that the decision to cap Bitcoin supply at 21 million tokens was not arbitrary but a deliberate choice. Nakamoto described it as a “calculated guess,” aiming to align Bitcoin pricing mechanics with other cryptocurrencies and acknowledging uncertainty about future market conditions.
Furthermore, Nakamoto affirmed that the 21 million Bitcoin cap represents a small part of the global trade, ensuring scalability for the global currency system.
He stated that this decision was made with the anticipation that the valuation of Bitcoin would fluctuate compared to traditional fiat currencies. Nakamoto cautioned against exaggerating the privacy features of Bitcoin, warning that transaction histories could potentially reveal user identities, adding more chaos to the price movements in the critical times of the cryptocurrency markets.
