If bitcoin were to fall below $69,000 in the next few days, several traders have predicted a more widespread market decline. The price of Dogecoin increased by 6% and the price of Bitcoin Cash by 13% in the days leading up to the anticipated halving event on April 4, which has traditionally been the beginning of a bull market for the token.
After a very unpredictable week, there were few catalysts for Bitcoin {{BTC}} price changes in the past 24 hours. In the days leading up to a big options expiration on Friday, prices have been relatively stable around the $70,000 mark after briefly jumping beyond $71,000 on Tuesday.
Tokens from most major networks saw minor declines. CoinGecko data shows that Internet Computer's ICP declined 6%, Solana's SOL and XRP both decreased 2%, and BNB Chain's BNB fell 2%. If bitcoin falls below $69,000 in the next few days, according to some traders, the market as a whole could see a further decline.
"The bulls' need to let off steam and the general decline in risk appetite in global markets" are the reasons behind Bitcoin's slide back below $70,000, according to Alex Kuptsikevich, a senior market analyst at FxPro, who explained the slump in an email.
Whether bitcoin can bounce back from Tuesday's intra-day lows near $69.5K will be the primary focus of traders in the near future. "If it breaks below this level, it could indicate a longer correction," he warned. With no obvious catalyst, Dogecoin {{DOGE}} saw the most gains among majors, increasing by 6%. But looking at past price movement, it seems like the coin is displaying fractals that have been seen before big price increases
The CoinDesk 20, an inclusive liquidity index of leading tokens excluding stablecoins, fell 1.4%. Ahead of the anticipated halving event on April 4, Bitcoin Cash (BCH) surged 13%. After the next halving, the block reward will drop from 6.25 BCH to 3.125 BCH.
Leveraged bets on higher anticipated price volatility increased as open interest on BCH-tracked futures more than quadrupled to $500 million on Thursday, from $213 million last week.
When the reward for mining transactions is cut in half, it reduces the rate of coin creation and the available supply. This process is called halving. Trackers indicate that Bitcoin's own halving will take place on April 20, which has traditionally been the day before a bull market for the asset.
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