Analyst cautions about Bitcoin plummeting to $56k: Bulls vs. bears.

Bitcoin (BTC) saw further declines on Thursday due to increased U.S. interest rates and escalating tensions in the Middle East. Analysts are closely monitoring BTC’s price movements as it approaches the critical Bitcoin halving expected around April 19 or 20. Despite attempts to stabilize above $65,000, BTC’s price has struggled, indicating a bearish trend.

Crypto analyst Ali Martinez highlighted in a post on April 18 that Bitcoin had entered a consolidation phase within a defined trading channel, with $61,000 as a critical support level. BTC is currently hovering around $61,000, which Martinez considers crucial for its next moves. If Bitcoin falls below this level, it could drop to $56,200. Conversely, if it rises above $62,300, it could signal a potential upswing to $66,500.

In terms of Bitcoin price analysis, BTC reached a daily high of around $62,210 but has since retraced and is struggling to maintain a price above $61,000. At the time of writing, BTC was trading at $61,080, marking a 3.49% correction in the last 24 hours. Additionally, the cryptocurrency has experienced a notable decline of 13.85% over the past week.

Despite the introduction of spot cryptocurrency exchange-traded funds (ETFs) in Hong Kong, which offered hope for investors affected by China’s crypto ban in 2021, Bitcoin’s climb towards $70,000 has faced challenges. It remains uncertain whether these ETFs will spark a Bitcoin surge like in the U.S. With BTC’s current downward trend, investors are now focused on how the upcoming halving event will impact the market.

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