Bitcoin Tests Support at Range Lows Amid Post-Halving Market Malaise

Bitcoin (BTC) price momentum is heading towards $62,000, potentially testing range lows. BTC/USD has retraced 5% since its recent rebound, leaving it within a range established before the weekend. Analysts express concerns about post-halving "boredom" and inactivity, warning that a daily close below $62,100 could indicate further losses.

Bitcoin Eyes Range Lows Amid Post-Halving 'Boredom'

New York, May 8, 2023 - Bitcoin (BTC) is facing a test of its range lows at $62,000 as analysts lament the "boredom" that has gripped the market since the block subsidy halving in mid-April.

Data from Cointelegraph Markets Pro and TradingView indicate that BTC price momentum has waned, with the asset slipping towards the lower boundary of its trading range. The daily close on May 7 at $62,300 leaves BTC/USD vulnerable to further losses.

"Any daily close below $62,100 or prolonged inactivity should be taken as a stop-loss," warns J. A. Maartunn, a contributor to on-chain analytics platform CryptoQuant.

Michaël van de Poppe, founder and CEO of trading firm MNTrading, expresses frustration with the lack of overall direction since the halving. "Bitcoin slowly procedes towards the lower boundaries of the range for a test of support," he writes. "After that, it seems likely we'll continue the upwards grind. Boredom has started since the Bitcoin halving took place."

An accompanying chart from van de Poppe highlights potential downside levels if a correction occurs. However, fellow trader Moustache remains optimistic, arguing that current price action resembles previous post-halving setups that ultimately led to sustained upside.

"The last dips before $BTC starts the next leg imo," he tells followers. "It's never been any different if you look at history. We're in 2017 or 2020."

Meanwhile, developments in the crypto exchange-traded fund (ETF) sector have produced mixed signals. Grayscale, a major player in the U.S. Bitcoin ETF market, has withdrawn plans for an Ether futures ETF. Additionally, U.S.-based Bitcoin ETFs have experienced net outflows on May 7, reversing the inflows seen over the previous two days, which totaled over $500 million.

Despite these outflows, investment firm Susquehanna has disclosed an ETF portfolio worth $1.3 billion, indicating that institutional interest in digital assets remains strong.

Analysts caution that Bitcoin's price action remains vulnerable to volatility, and investors should exercise caution and conduct thorough research before making any trading decisions.