Is BTC price going to be corrected? Will Bitcoin Halving Destroy Bullish Momentum?

After BTC price rose above the key support between $63,250 and $66,580, the bulls are working hard to hold the level above $70,000. However, the bears appear to have succumbed to these levels and as a result, the token is facing significant upward pressure after breaking above the levels. That said, won’t the upcoming quarter close and Bitcoin halving have any impact on the rally? Will BTC price not reach $100,000 this year?

With only 25 days left until the halving event, market participants expected the token to rally before the halving event. The price hit a high near $74,000, but a pre-halving bounce was expected to reach $75,000 or slightly higher. However, the token has been facing significant bearish pressure since then, failing to stay above $70,000. This could be a sign that BTC price is heading for a new downtrend. Here’s why a fix could come soon.

Long-term traders who had held BTC for more than 3-5 years have begun to return their holdings to exchanges. The BTC consumption output age range for the year has plummeted as traders transferred nearly 90,000 BTC over the past few weeks.

The Bitcoin Sharpe ratio, which represents the average return earned after removing the risk associated with the token, has reached higher risk territory. The recent price surge therefore suggests high risk for new entrants. Therefore, market participants need to measure volatility and market dynamics.

Buying activity in the US declined after the BTC price hit a new high of around $73,800. Meanwhile, a rebound is expected in the middle of this year thanks to institutional investment and whale purchases.

Despite all that, market sentiment continues to hover around 81 (extreme greed), indicating that traders are optimistic about the future trend. However, a final plunge within the lower support zone could trigger a healthy uptrend and push Bitcoin (BTC) price above recent highs.