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Effects of Global Influences on Bitcoin Prices
Global influences have significantly impacted both fiat currencies and cryptocurrencies, particularly leading to a sharp decline in the value of Bitcoin. The current trading environment reflects a bearish sentiment, with Bitcoin values plummeting and little hope for imminent upward movement. This downward trend is primarily attributed to various market conditions aggravated by intensified selling pressure resulting from these global influences.
Impact of Recent Events
With the Bitcoin halving event looming just three days away and the outbreak of the Iran-Israel conflict, Bitcoin prices have taken a substantial hit. Hovering between $61,000 and $62,500 in recent days, Bitcoin’s inability to garner bullish support signals weakness in the market. Experts anticipate a significant pullback by the bears, speculating a potential 20% price drop to around $50,000 if the support level is breached and the gap is filled.
Recommended Course of Action
Traders are strongly advised to closely monitor Bitcoin’s price movement within the next 48 hours, as a significant shift may occur before the scheduled halving event. Furthermore, the Bitcoin Fear and Greed Index suggest a transition from a ‘Greed’ rating of 74 to 65, indicating reduced chances of a price rebound pre-halving. This index historically hints at a Pre-Halving Retrace pattern where Bitcoin prices dip before the halving but tend to rally shortly thereafter.
Despite the current challenges, the Bitcoin ETF’s rising popularity has played a crucial role in boosting Bitcoin’s value, constituting a significant portion of the $2.4 trillion virtual currency market as of last week. While factors like the Bitcoin ETF and geopolitical tensions persist, past trends indicate that Bitcoin is likely to recover in the weeks following the halving event.
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