Bitcoin is trading sideways with a negative bias, increasing the possibility of a short-term correction that could pull altcoins lower.
Bitcoin (BTC) has been facing stiff resistance near $52,000, increasing the possibility of a short-term correction. The sideways action resulted in net outflows of roughly $36 million from the spot Bitcoin exchange-traded funds (ETFs) on Feb. 21, according to various sources, including BitMEX Research. However, the bleeding stalled on Feb. 22, and the day saw net inflows of about $251 million into the ETFs.
Some analysts believe the markets are ready for a pullback before the halving in April. Popular trader and analyst Rekt Capital said Bitcoin’s current bull phase is similar to the 2016 and 2020 bull runs. If history repeats itself, “a pre-halving retrace” followed by “a post halving reaccumulation period” is possible.
Bitcoin’s hesitation to continue its rally has triggered profit-booking in select altcoins. A corrective phase is positive for the long-term health of the markets as it shakes out the weak hands and allows the stronger hands to add at lower levels.
