Will Bitcoin extend fall?

Bitcoin, the world's largest cryptocurrency by market capitalisation, has encountered significant turbulence in recent weeks, marking its worst monthly performance since November 2022. The digital asset has declined by 14% in April, reflecting a substantial pullback from the enthusiasm surrounding US exchange-traded funds (ETFs) for cryptocurrencies.

Analysts predict further downside for Bitcoin, with expectations of a potential sell-off to the mid-to-low $50,000 range. Seasonal trading patterns, such as reduced activity during the summer months, also suggest the possibility of price declines.

Several factors contribute to Bitcoin's recent price decline. One key factor is the recent Bitcoin halving event, which reduced miner rewards from 6.25 BTC to 3.125 BTC. Although this event is expected to drive up demand and prices over time by reducing supply, the market's response has been sluggish, resulting in a temporary price dip.

Additionally, the market introduction of spot Bitcoin ETFs in Hong Kong has had mixed implications. While this development is anticipated to attract more capital into Bitcoin, its full impact on the market may take time to materialize.

Technical front

Despite the current market correction, technical analysis suggests that Bitcoin's overall trend remains bullish. A bull flag formation observed on the daily chart indicates a potential price surge towards $100,000 or higher if the price breaks above the upper boundary of the flag.

However, caution is advised regarding Bitcoin investments. While Bitcoin has demonstrated resilience and growth potential over time, the cryptocurrency market is highly volatile and susceptible to various external factors, including global economic conditions, regulatory changes, and market sentiment.

Bitcoin's recent decline has prompted speculation about a potential bear market phase, with the cryptocurrency falling below the $60,000 mark. The broader crypto market has also experienced notable declines, with major altcoins like ether (ETH) and solana (SOL) recording losses of 7%-8%