Cryptocurrency Rally Stalls with Bitcoin Approaching the High-Risk Period Before Halving Event

(Kitco News) – As Bitcoin’s (BTC) price ascent momentarily halts, providing a tranquil period for crypto traders to reassess their assets, enthusiasts notice the cryptocurrency grazing near the $67,000 support zone come Monday.

Equity markets saw an uptick, chiefly in the tech-dominated sectors, dispelling the fear of enduring high interest rates as the market anticipates the upcoming Federal Open Market Committee meeting’s decision on rates.

While the CME FedWatch tool indicates a near-certain probability (99%) of rates remaining stable, investors are relying on breaking news to guide their market engagements. Innovation strides by NVIDIA and Google have painted a bullish sentiment, leading to a positive market closure for key indexes.

The S&P, Dow, and Nasdaq concluded the day up by 0.63%, 0.20%, and 0.82%, respectively.

Bitcoin displayed a tumultuous pattern, reaching near $68,000 in early Monday trading, but was later suppressed to a $66,575 low by sellers in the afternoon. The tussle for price control continues between bears and bulls, with the former trading at $67,530, reflecting a 1.05% decline over 24 hours, according to TradingView data.

BTC/USD Chart by TradingView

Analysts from Crypto Chiefs indicate a crucial resistance near the 2021 peak exceeding $69k, endorsing a sustained stance above this threshold for potential progression towards $71.8k.

The analysts caution that failure to eclipse this price range could trigger a downtrend.

Moreover, as elucidated by market analyst Rekt Capital in a post on X, Bitcoin is on the cusp of a precarious ‘Danger Zone’ where traditional pre-halving retraces originate.

With historical precedence, a significant retrace could herald a lengthy consolidation period before Bitcoin embarks on a major uptrend. The asset is merely a month shy from the approaching halving event and has witnessed an 11% diminution last week, signaling potential movement.

Michaël van de Poppe of MN Trading postulates that the surges of Bitcoin leading to the halving may have peaked, prospecting a dip beneath the $60,000 mark as the focus might transition to altcoins.

I think #Bitcoin has captured most of the upside pre-halving.

Perhaps, liquidity around the highs will be taken, but I think we’ll rotate towards altcoins in the coming period.

Ultimately, Bitcoin <$60K is still a potential one. pic.twitter.com/d2yEapwDdL

— Michaël van de Poppe (@CryptoMichNL) March 17, 2024

Even if a downtrend is imminent, indicators pointed out by market analyst Moustache suggest a powerful surge might be on the horizon for Bitcoin as it proposes entering a parabolic trajectory.

#Bitcoin

Sometimes you have to dig a little deeper to find out where $BTC is in the cycle.

Whenever Bitcoin breaks through the blue line in the Mayer Multiple-Indicator AND at the same time is near or above the ATH, the parabolic move often soon follows. 🔍🔥 pic.twitter.com/RvX6OhAFzW

— 𝕄𝕠𝕦𝕤𝕥𝕒𝕔ⓗ𝕖 🧲 (@el_crypto_prof) March 18, 2024

Altcoins decline, with meme coins leading the downturn

Altcoins largely mimicked Bitcoin’s dip on Monday, with most in the top 200 by market capitalization experiencing declines. Notable exceptions include Mantra (OM), which soared 37.8% to trade at $0.796, and JOE (JOE), which rose 32.2%. In contrast, meme coin Book of Meme (MEME) dropped by 32.5%, Floki (FLOKI) slid down by 16.6%, and Helium Mobile (MOBILE) retracted by 14.5%.

The overall market capitalization for cryptocurrencies presently stands at $2.54 trillion, with Bitcoin’s dominance index at 52.1%.