Breaking $48,000 earlier this month updated price targets, while a sudden drop to $41,000 was seen. Bitcoin (BTC)’s recent losses caused it to fail an important test that was supposed to break above $50,000 before the “mid-halving” correction event on April 11. According to historical data, failure to stay above the $37,000 support will show that we are in a bear market.
Bitcoin price drops due to correction from mid-halving
On-chain analytics platform Santiment stated last week that a major halving rectification event will take place on April 11. After failing to break the main resistance level in the previous two cycles, Bitcoin (BTC) price reached ATH 518 days later and then turned bearish. BTC price entered a prolonged bear market after the mid-halving.
Santiment believes that the Bitcoin cycle will be different this time, as the number of addresses is much higher (around 900 thousand), whales collect BTC and investors are more mature. However, the current Bitcoin price trend seems to repeat past historical trends as the price drops below $42,000. Also, Bitcoin is not yet consolidating above the key $45,000 resistance level. As a result, it seems unlikely that the Bitcoin price will rise above $50,000 this week or month. In summary, the price is expected to break the next support level of $37,000 in the near future. This will mark a historical bear market.
Other factors that put pressure on the price
As we quoted as Kriptokoin.com, Bitcoin (BTC) price lost 10.55% value compared to the previous week and decreased by about 3% in the last 24 hours. It gained downward momentum from the $47,000 milestone and is currently trading at $41,281.48.
Furthermore, the anticipated Fed rate hike, coupled with rising inflation and the crypto market’s link to the Nasdaq 100 index, resulted in downward pressure on the BTC price. Today, they both briefly dropped below their 50-day moving averages.
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