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Bitcoin (BTC) is entering a healthy reset phase, cooling down its overheated momentum and preparing for a new upward rally, drawing the attention of investors worldwide.
Benjamin Cowen, founder of Into The CryptoVerse, analyzed in a video released on April 9 (local time) that Bitcoin is currently undergoing a healthy correction process to resolve technical burdens. He explained that the Relative Strength Index (RSI) has moved out of the overbought zone into the neutral area, significantly removing signs of market overheating. Cowen emphasized that this sideways movement and correction are essential steps that must be taken to maintain a long-term bull market.
For Bitcoin to continue its current bullish trend, it must maintain the $68,000 support level. This is because the 50-day exponential moving average on the daily chart is forming a strong defensive barrier in the $67,000 to $68,000 range. Cowen predicted that if the upper resistance level of $72,000 is definitively broken, a full-scale rally towards new all-time highs will begin.
Comparing its current position to past halving cycles, Bitcoin is in a typical "boring" phase that appears right after a halving. The pattern of prices stagnating or slightly declining for several weeks, testing investors' patience, was repeated immediately after the 2016 and 2020 halvings. There is a high probability that an explosive bull market will emerge between the third and fourth quarters of this year, once this accumulation phase concludes.
The inflow of institutional funds through Bitcoin spot ETFs has brought about a structural change, ensuring the market's downside rigidity. Demand for major Bitcoin spot ETFs, such as BlackRock's IBIT, remains robust despite temporary volatility. The inflow of traditional financial capital is a solid foundation that reduces the possibility of sharp crashes seen in the past and allows for a gradual upward curve.
Rather than being swayed by short-term volatility, patience is required to trust the trend in higher time frames. Volatility arising from the liquidation of excessive leverage in the futures market actually presents good accumulation opportunities for long-term investors. As long as macroeconomic indicators remain stable and institutional demand continues, Bitcoin's long-term upward trajectory remains valid.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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