As Bitcoin (BTC) struggles to maintain its position above $63,000, analysts anticipate a further price decline, terming it a “correction” ahead of the 2024 Bitcoin halving event.
Renowned crypto analyst Michael van de Poppe suggested that the ongoing consolidation indicates a “pre-halving peak,” emphasizing that there’s still room for Bitcoin to reach new all-time highs. Despite a recent 2.6% drop in price over the past week and a 4% decline over the last fortnight, Van de Poppe remains optimistic, attributing the downward trend to the looming halving event.
Drawing parallels to previous cycles, Van de Poppe compared Bitcoin’s current price action to that of the 2016–2017 cycle, indicating that history may repeat itself with a significant upward trend.
The Bitcoin halving, an automated process reducing miner rewards by half every four years or after 210,000 blocks, is slated for April 2024. Van de Poppe’s analysis suggests that the current market conditions reflect a precursor to a prolonged bullish market cycle.
At the time of reporting, Bitcoin was trading at $65,537, reflecting a 3.2% increase in the last 24 hours, according to CoinGecko. Despite the recent dip, this price marks a notable 26% improvement over the past 30 days.
Adding to the analysis, pseudonymous analyst Rekt Capital highlighted that the current correction aligns with historical patterns observed before previous halving events. Typically occurring 14–28 days before the halving, these pre-halving retracements have historically paved the way for subsequent bullish trends.
Comparing this year’s correction to previous cycles, Rekt Capital noted similarities with the 20% pre-halving correction in 2020 and the 40% pullback preceding the 2016 halving. While predicting a correction duration of approximately 77 days, Rekt Capital suggested that the magnitude of the downturn might be less severe than in previous cycles.
The current downward trajectory presents a potential buying opportunity for investors eyeing Bitcoin before the impending halving event. If historical trends hold true, the correction may herald the onset of a bullish phase post-halving, further reinforcing Bitcoin’s status as a long-term investment asset.
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