Market remains cautious as bitcoin moves sideways

The price of Bitcoin (BTC) is not trending in a specific direction and began trading on Tuesday at $66,325, as the market remains cautious and in a state of anticipation with the approaching expected halving event. Meanwhile, Ethereum’s (ETH) price awaits the next signal from Bitcoin to move, while Ripple’s (XRP) price continues to be significantly influenced by developments in the court.

It is worth noting that now, about three weeks before the halving event, major Bitcoin holders or so-called “whales” have joined the retail market in preparation for this historic event. One whale transferred 1,000 BTC tokens worth $68.54 million from the Bitfinex exchange to a new unknown wallet. Additionally, an inactive address containing 500 bitcoins worth about $34.72 million was activated after 11.7 years. Another whale transferred 1,500 bitcoins worth $103.08 million from one unknown wallet to another.

It is believed that institutions and whales have bought more than 12,000 bitcoins, most of which were on Coinbase and Kraken, and then moved them to private wallets. It is also believed that small investors are still taking advantage of every rise by taking profits, while the wealthy buy every dip, which explains the recent price volatility and instability.

The monthly close last week above the $70,000 level could be a positive signal; however, further upward movement is needed to maintain gains above this level to confirm the signal.

Trader sentiments are also mixed, with two opposing views suggesting that the correction from the new all-time high may have ended and a new upward acceleration is expected, or that a deeper decline is still imminent. Especially after Bitcoin’s price declined during the early days of the current month, reaching its lowest level at $68,200. This move witnessed nearly $250 million in total liquidation across the market. This comes as the market enters Bitcoin’s mid-month, with just three weeks remaining until the event.

Miners are on standby and deliberate movements are being made, as evidenced by the high Bitcoin (BTC) fragmentation rate. This means that the total computational power used for Bitcoin mining has significantly increased, indicating that more miners are currently participating in the network.

It is necessary to note accurately that the April 1st drop saw Bitcoin’s price exit its lowest levels on March 27th to below $68,500. Now the burden lies on traders and investors to maintain stability above this range for the continuation of the upward trend.