Bitcoin's 'Final Shakeout' Before Surge... "Massive Rally Coming in Second Half"

▲ Bitcoin (BTC) / ChatGPT-generated image

Bitcoin (BTC) has entered a healthy reset phase, cooling off overheated momentum and preparing for a new upward rally, drawing the attention of investors worldwide.

Benjamin Cowen, founder of Into The CryptoVerse, said in a video released on April 9 (local time) that Bitcoin is currently undergoing a healthy correction process to ease technical burdens. He explained that the Relative Strength Index (RSI) has moved out of the overbought zone into neutral territory, removing many signs of market overheating. Cowen emphasized that such sideways movement and correction are essential steps to sustain a long-term bull market.

To maintain its current bullish trend, Bitcoin must hold the $68,000 support level. The 50-day exponential moving average on the daily chart is formed between $67,000 and $68,000, serving as a strong defensive barrier. Cowen projected that a decisive breakout above the upper resistance level of $72,000 could trigger a full-fledged rally toward new all-time highs.

A comparison with past halving cycles shows that Bitcoin is currently in the typical sluggish phase that appears immediately after a halving event. Similar to the periods following the 2016 and 2020 halvings, prices stagnated or declined slightly for several weeks, testing investors’ patience. As this accumulation phase concludes, the possibility of an explosive rally emerging between the third and fourth quarters of this year remains high.

Institutional capital inflows through spot Bitcoin ETFs have brought structural changes that reinforce the market’s downside resilience. Demand for major spot Bitcoin ETFs, including BlackRock’s IBIT, has remained solid despite temporary volatility. The influx of traditional financial capital provides a strong foundation for a gradual upward trajectory, reducing the likelihood of the sharp crashes seen in the past.

Rather than reacting to short-term volatility, patience and trust in higher time-frame trends are necessary. Volatility arising from the liquidation of excessive leverage in the futures market can offer favorable accumulation opportunities for long-term investors. As long as macroeconomic indicators remain stable and institutional demand persists, Bitcoin’s long-term upward trajectory remains intact.

Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses incurred based on it. The content should be interpreted solely for informational purposes.