Bitcoin (BTC) is back below $70,000 after momentarily rising above this psychological price range on April 7. This price action suggests that the bears are still in control, which could remain the case throughout this week. As the tug of war continues, here are some key events to watch out for.
Is The Pre-Halving Retrace Over?
Crypto analyst Rekt Capital previously highlighted the phases of the Bitcoin Halving, including the pre-halving retrace. He noted that Bitcoin’s price usually drops 28 to 14 days before the Halving event. With the halving event about 12 days away, there is the belief that the pre-halving retrace is over.
However, considering that the cycle has already proven unique, especially with BTC hitting a new all-time high (ATH) before the Halving, investors will undoubtedly be wary about the flagship crypto making one last price correction this week. In one of his recent X (formerly Twitter) posts, Rekt Capital also admitted that it is still uncertain whether or not the bottom is in.
Whale activity this week will also give an idea of the current sentiment in the market as the Halving event draws near. Significant purchases of the flagship crypto suggest that Bitcoin investors believe the worst is over and are already positioning themselves for a potential parabolic price surge once the Halving occurs.
If whales signal a bullish sentiment, that also means that the market has likely moved to the next Halving phase, which, according to Rekt Capital, is the “Re-accumulation” phase. On the other hand, a wave of BTC sell-offs this week will strengthen the bearish narrative currently plaguing BTC and suggest that the pre-halving retrace bottom isn’t in yet.
Spot Bitcoin ETFs And The Derivatives Market
The net flows the Spot Bitcoin ETFs record this week will also be critical in determining the current market sentiment. They have experienced mixed flows in the last two weeks, something which has given a more bearish than bullish outlook considering the amount of net inflows they were recording before now.
However, things could again pick up this week with BlackRock expanding the list of authorized participants for its iShares Bitcoin Trust (IBIT) last week. These participants include notable names like Goldman Sachs, Citadel, and Citigroup. Therefore, a significant amount of new money could flow into the IBIT ETF this week.
Meanwhile, the crypto community will be watching the derivatives market as, depending on market volatility, many positions could be wiped out this week. Crypto analyst Ali Martinez recently revealed that nearly $72 million could be liquidated if Bitcoin rebounds to $70,875. If that happens, it could be the first step in helping the bulls regain control over the market.
BTC bulls push price to $72,200 | Source; BTCUSD on Tradingview.com
Featured image from Bitcoin News, chart from Tradingview.com