With less than 48 hours left for the fourth Bitcoin halving event, bitcoin (BTC) price has dropped over 16% from its all-time high of $73,600, dragging ether (ETH) and many other altcoins into a fearsome-looking downtrend.
While some say it is the usual pre-halving dump, others believe the prevailing price decline in the crypto market is caused by the Iran-Israel geopolitical crisis and the strengthening dollar. Whatever the catalyst may be, investors should pay attention to the demand zones of BTC, ETH and other cryptoassets to make better trading decisions.
Read also: Between investing in bitcoin and Ether
Key BTC support levels
Retracing close to $60,000 on Wednesday, the leading cryptocurrency has now declined over 12% and 8% in the past week and 30 days, respectively, at the time of writing. Already causing liquidations of millions of dollars, many leading blockchain analytic platforms and technical analysts suggest that BTC may plummet deeper in the coming days, pointing investors to where to set their buy orders.
IntoTheBlock data shows that 1 million addresses historically acquired over 530,000 BTC at an average price of $64,300. However, the $64,000 level failed to serve as a significant support as selling pressure increased. Accordingly, the leading market intelligence platform revealed that the next major demand zones for BTC lie at $56,000 and $51,500.
Trader Ali shared the same BTC outlook on Thursday, stating that $61,000 is a very important level. According to the pseudonymous technical analyst, BTC is bound to correct to $56,200 if $61,000 fails to serve as support. Conversely, BTC is expected to reclaim $66,500 if the $61K support level holds. “The first sign of a rebound will be a sustained 4-hour candlestick close above $62,300,” Ali added.
Notably, BTC is trading at $61,430 at the time of writing.
Related: Spot Bitcoin, Ether ETFs Could Gain Approval in Hong Kong Soon: Report
Possible outcomes for ETH price
ETH is another cryptoasset capturing the attention of both individual and institutional crypto investors hence, the need to weigh its possible price outcomes. The second-largest cryptocurrency by market cap, whose price surpassed $4,000 in early March has been in a downtrend since the Dencun upgrade on 13 March 2024.
Particularly, this downtrend has taken its price below $3,000 at press time. Weighing in on ETH price outcomes ahead of the bitcoin halving, Ali has highlighted the $2,430 and $2,000 levels as the critical support zones for ETH. Citing data on IntoTheBlock, Ali revealed that around 9.37 million addresses hold nearly 53 million ETH in the above range.
While this doesn’t mean that ETH has to go this low, it is good to keep this range in mind as its price explores new lows. Notably, ETH is trading at $2,989 at the time of writing, down 17% and 8% in the past seven and 30 days, respectively.
While BTC and ETH may or may not encounter turbulence in the short term due to the impending Bitcoin halving, institutional adoption for both cryptoassets has been on the rise lately. Recall that the Hong Kong Securities and Futures Commission (SFC) approved the launch of spot BTC and ETH exchange-traded funds for several leading asset managers on 15 April 2024. The development could lead to heavy fund inflows into both cryptoassets.
Read also: What is bitcoin halving and why does it matter to crypto investors?
Credit: Ndianabasi Tom A crypto journalist and content writer who has been talking about cryptocurrency and blockchain technology since 2018, Ndianabasi is a Writer at Crypto Asset Buyer (CAB).
