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Bitcoin is currently navigating through a turbulent phase, but experts remain optimistic about its long-term prospects even though short-term challenges are expected. On Apr. 17, in a detailed thread on X (formerly Twitter), well-known trader Mikybull Crypto discussed the current state of the leading crypto, describing the recent correction as part of a normal cycle.
Bitcoin on the Verge of Losing $60K Support
Bitcoin is currently experiencing a downward shift, with prices threatening to drop below the $60,000 mark. This represents a significant pullback from its recent all-time highs, which saw a 15% decrease in value. According to Mikybull Crypto, these fluctuations are typical in the lead-up to Bitcoin’s halving that is scheduled for Apr. 19. This event has historically not immediately benefitted the crypto’s short-term price performance.
#Bitcoin is experiencing normal correction as it always did every halving month in preparation for cycle top. Currently, it is displaying the kind of Wyckoff re-accumulation range it did in Dec 2023 that led to $73k in 2024. 1/5 pic.twitter.com/mBAfjr27IT — Mikybull 🐂Crypto (@MikybullCrypto) April 17, 2024
The trader highlighted a Wyckoff re-accumulation pattern similar to one seen in December 2023, which eventually led to a price increase to $73,000 in early 2024. This pattern suggests a potential upside breakout in the coming few weeks.
This analysis is further supported by increasing bid liquidity around the $60,000 level, suggesting that market forces might be gearing up to push the price lower in the short term. Mikybull Crypto also pointed out the presence of significant long liquidation pools around $57,000 as well, which he believes need to be cleared by “smart money” to set the stage for a post-halving rally.
Other Analysts Also Bearish on BTC’s Short-Term Prospects
Market sentiment was echoed by other analysts, including Skew, who commented on the sensitivity of perpetual swaps to spot price movements, hinting at possible volatile swings aimed at hitting liquidity targets. Meanwhile, Mike McGlone of Bloomberg Intelligence raised concerns about a broader risk retreat, likening Bitcoin’s current market performance to a “canary in the coal mine” scenario when compared with traditional assets such as gold.
$BTC Lots of absorption above $64K – Limit selling into best bid – Spot CVD up vs price sideways -> lower Perps pretty sensitive to spot movement here so expect some wide moves & wicks into liquidity Liquidity: $61K – $58K (limit bids) $70K – $72K (limit asks) pic.twitter.com/boY1zx3qkI — Skew Δ (@52kskew) April 17, 2024
Despite the immediate uncertainties, Mikybull Crypto’s thread concluded on a positive note, reinforcing confidence in Bitcoin’s robust macroeconomic foundation and its ability to reach new highs in the future. “Bitcoin from a macro perspective is looking solid and on track, which shows that the cycle top in this cycle is far from being reached,” he said, referencing the historical gains following previous halvings. This sentiment suggests that for long-term investors, the current price movements may present more of an opportunity than a setback.
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