Bitcoin (BTC) failed to pass an important $50,000 resistance mark despite rising above the $48,000 level earlier this month. The token’s recent losses saw it fail a crucial test, where it was expected to stabilize above the $50k level before the mid-halving correction event on April 11.
If the token had strengthened, it would have broken the cycle of price weakness stemming from a halving of rewards for mining. But the token’s price dived below the $42k level, raising concerns over the onset of another bear market.
Mid-Halving Correction Drives Bitcoin (BTC) Price Lower
Last week, on-chain analytics platform Santiment announced the significant mid-halving correction event scheduled on April 11. According to the Santiment study, the bitcoin price generally takes 515-545 days to reach an ATH after a halving.
In the last two cycles, the Bitcoin (BTC) price had reached an ATH after 518 days and then went into a correction after failing to break the important resistance level. From this mid-halving correction, the BTC price moves into a long bear market.
However, Santiment said the Bitcoin cycle could be different this time as the number of addresses were significantly higher- about 900k, whales are accumulating Bitcoin, and investors are more mature.
Unfortunately, the current Bitcoin (BTC) price trend seems to follow the previous historical patterns as the price has plunged below the $42k level. Moreover, Bitcoin has even failed to stabilize above the strong resistance level of $45k. Thus, Bitcoin (BTC) price moving above $50k is not possible this week or month. Therefore, the price is expected to break the next support level of $37k soon. And, if it fails to rise above the $37k level, the Bitcoin will move into a bear market.
Other Factors Pushing Bitcoin (BTC) Price Under Pressure
According to CoinMarketCap, the Bitcoin (BTC) price has tumbled nearly 10% in the last week and nearly 3% in the last 24 hours. The price action has changed in a downwards direction from the $47k level, with the current price trading at $42,244.
Moreover, the Bitcoin price has been under pressure due to the upcoming Fed interest rate hike amid growing inflation and the crypto market correlation with the Nasdaq 100 index. Both moved briefly below their 50-day moving average today.