Bitcoin has recently dropped by 18%, moving down from its peak price of $73,737 on March 14 to reach approximately $60,000 as of late trading on April 17.
Market corrections are normal during market cycles, and many experts believe that the current correction isn’t finished yet, even though the upcoming halving event is imminent.
On April 17, the trader and analyst known as ‘Rekt Capital’ identified three stages in the market leading up to the halving event and forecasted that we would transition into a period of buying back or accumulating more assets.
Bitcoin Re-Accumulation Phase
In the past month leading up to the bitcoin halving, an analyst noted that the cryptocurrency had experienced two significant drops in value, each amounting to approximately 18%.
“He pointed out that this disadvantage is commonly experienced prior to a halving event. For context, he drew a parallel between this situation and past occurrences. In the case of 2016, the market correction before the halving reached a depth of 38%. Whereas, in 2020, it was only 19% deep.”
After the correction reaches an end and the halving takes place, markets are expected to go through a period of buying back or accumulating assets again, according to his forecast.
In this stage, Bitcoin’s price is expected to set a lower boundary before trading horizontally, approaching the halving event and its aftermath. Yet, based on past trends, this accumulation period could persist for several months.
Following the Bitcoin halving in 2016 and 2020, its price remained relatively stable for about five months. Based on historical patterns, the market may continue to trade within a range around the current high $50k levels until around October this year.
“During this phase, some investors may sell their Bitcoin holdings due to boredom, impatience, or frustration over the absence of significant returns following the halving event.”
#BTC
3 Phases of The Bitcoin Halving
1. Final Pre-Halving Retrace
Bitcoin has produced two -18% retraces prior to the Halving in the span of just over a month
Around the middle of March, Bitcoin (BTC) experienced a setback and decreased by approximately 18%. It subsequently rebounded and reached $70,000. In mid-April, however, Bitcoin dipped once more, losing around 18% of its value.
This…
— Rekt Capital (@rektcapital) April 17, 2024
According to Santiment, an analysis firm specializing in on-chain data, there was a decline in positive social sentiment towards cryptocurrencies around April 18th.
Based on the perspectives of cryptocurrency enthusiasts, the bull market for Bitcoin and other digital currencies seems to have run its course after a significant correction from their peak values. There’s been a growing chatter about bear markets in the crypto community. However, it is important to remember that market trends often move in the opposite direction of popular sentiment.
Elsewhere on Crypto Markets
The price of Bitcoin fell to $60,000 in late trading on Wednesday, but bounced back up to $62,000 during the early hours of Thursday’s Asian trading session.
At present, Ethereum has slipped below the $3,000 mark once more, but it has managed to bounce back slightly and is now priced at $3,027.
The altcoins were mostly in the red again, with larger losses for Dogecoin, Toncoin, and Polygon.
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2024-04-18 09:08