It was November 2021 when Bitcoin bulls had a massive surge climbing towards $70,000 and dropped back. Since then, the bulls have had a series of failed attempts to reach the target. Earlier this month yet again Bitcoin failed to surpass another important resistance at $50,000.
Today, the flagship currency has dropped below $42,000 as the currency is trading at $41,501 with a decrease of 2.40% in the last 24hrs.
Is Mid-Halving Reason For Bitcoin’s Correction
Last week, Santiment, an on-chain analytics platform made a statement that the mid-halving correction event is scheduled for April 11. Also as per Santiment’s data, the Bitcoin generally requires 515-545 days to see an all-time high price after halving.
In the previous two cycles, the world’s largest cryptocurrency by market capitalization had reached ATH after 518 days before sliding back and getting into correction mode. As Bitcoin is in the correction zone during the mid-halving period, Bitcoin has moved into a bear market.
However, as the Bitcoin addresses have surged to 900k, and whales are accumulating Bitcoin, Santiment believes that the present Bitcoin cycle could be different this time.
At present, the Bitcoin price cycle looks like it is following the previous historical pattern as the price has plunged below $42,000 and Bitcoin has also failed to sustain above $45,000 which is a matter of concern.
Hence, Bitcoin reaching above $50,000 seems impossible and the flagship currency is also expected to slide towards $37,000 soon. If at all Bitcoin price fails to even maintain their price above $37k, then we could see Bitcoin entering bear market.
The mid-halving is not the only reason behind Bitcoin price’s correction. The flagship currency is under pressure because of the upcoming Fed interest rate hike in the midst of increasing inflation and the crypto market’s correlation with the Nasdaq 100 index.