Yesterday Bitcoin was in the midst of a rally that brought it back above $30,000 due to new data coming out re-igniting fears of a banking crisis when it had a sudden downturn that wiped away all of the recent gains in just about an hour.
Most people that have any knowledge of Bitcoin and cryptocurrencies in general understand the concept of what a “halving” is. Halving refers to an event in which all the new coins produced on a blockchain are cut in half. Although Bitcoin is not the only cryptocurrency to have a massive deflationary aspect in its code, but it did indeed invent this idea of a halving mechanism.
According to A Fibonacci retracement from the all-time highs (Nov. 2021) to the lows hit exactly one year later (Nov. 2022) BTC has just breached the first significant retracement level this week.
In our last article, we spoke about the possibility of a pivot from bearish to bullish and even an end to the crypto winter if Bitcoin was able to trade and hold above $26,000.
Bitcoin has gained around 18% over the last three days after reaching support at $20,000 on Friday. This comes on the heels of major banks collapsing and the US government quickly stepping in stating they will protect depositors in full.
