Bitcoin finished the first quarter of 2024 with massive gains of 68.50%. A large part of the rally was fuelled by the launch of the spot Bitcoin exchange-traded funds, which saw strong inflows. Bitcoin’s rise boosted sentiment, resulting in sharp rallies in several altcoins. The question troubling investors is whether the rally will continue or is it time for a correction?

The next major event to watch out for is Bitcoin’s halving, which is expected to happen in about 18 days. Historical data shows that Bitcoin made a new all-time high 12-18 months following the halvings in November 2012, July 2016, and May 2020. However, in 2024, Bitcoin hit a new high prior to the halving. This has made some analysts cautious who expect Bitcoin to witness a short-term sell-off after the event.

We cautioned traders in the previous analysis that a break below the 20-day exponential moving average (EMA) could sink Bitcoin to $59,224, and the BTC/ USD pair fell to $60,771 on March 20. Subsequent recovery fizzled out near $72,000, indicating that the bears are aggressively selling on rallies. The 20-day EMA is flattening out, and the relative strength index (RSI) has dropped to the midpoint, signaling that the bulls may be losing their grip. If the price maintains below the 20-day EMA, the pair could reach the 50-day simple moving average (SMA).

This is a key support to watch out for in the near term because a break and close below it may accelerate selling. The $59,224 level may act as a minor support, but it is likely to be broken. The pair may then plummet to the breakout level of $52,100. Contrarily, if the price turns up from the current level or the 50-day SMA, the bulls will again try to overcome the overhead resistance between $72,000 and $73,835.

If they succeed, the pair may start a rally to $80,000.

Lastly please check out the advancement’s happening in the cryptocurrency world.

Enjoy the issue!