Bitcoin Likely to Hit New High in 2024 Following Halving - DecenTrader Analysis Predicts
Summary:
DecenTrader's analysis predicts Bitcoin could reach a new high in 2024, following a period of sideways price movement and a surge before the upcoming block reward halving slated for April 18. However, a sell-off akin to the one following the launch of Bitcoin ETFs is also foreseen. CEO Filbfilb expects a new all-time high for Bitcoin in late Q4 2024, but cautions investors against excessive optimism in the coming weeks, given the consistent pattern of Bitcoin's market cycles.
Bitcoin could reach a new all-time price high in 2024 although the expected "halving year" may first create a challenging environment for the cryptocurrency's bullish investors, according to a recent analysis by trading platform DecenTrader. The company anticipates a period of sideways market movement for about a month, after which traders will react to the upcoming reduction in Bitcoin’s block rewards.
DecenTrader CEO and co-founder, Filbfilb, pieced together a 2024 Bitcoin price projection for his readers. It includes a surge of buying approximately two months before the halving event, which is currently slated for April 18. This increase will likely be followed by an instance of market selling similar to the events following the introduction of the spot Bitcoin exchange-traded funds (ETFs) a month ago.
Keeping in mind that the halving of Bitcoin will happen around April 18, Filbfilb bases his prediction on the assumption that there will emerge significant buying interest some weeks prior to the halving. A large number of buyers are expected by the second week of March, with Bitcoin taking about 30 more days to stabilize following its corrective phase. This stabilization will come before the Fear of Missing Out (FOMO) demand kicks in.
Speculators are believed to be capable of driving the Bitcoin price to its current two-year peak of $49,000 before an ensuing ETF-style sell-off. Nevertheless, the remainder of 2024 is predicted to end with price discovery, also evidenced during the previous halving year in 2020.
Filbfilb expects Bitcoin to set new price records by the mid or late fourth quarter of 2024, allotting time for a correction phase that will test investors’ determination in the meantime.
Trying to anticipate Bitcoin's price changes within the first quarter might be tricky for traders due to geopolitical factors and global economic challenges which could bring turbulence to the risk-asset landscape. The weakness of the United States banking system is one such hurdle, with the former CEO of crypto exchange BitMEX, Arthur Hayes, predicting significant bad news by this March. Some speculate another all-time price high for Bitcoin will be postponed until 2025 ends.
However, Filbfilb cautions against too much optimism for the weeks ahead. He stated that people’s belief in Bitcoin reaching new price highs before the halving because "it's different this time," may not be a realistic expectation. He argues that Bitcoin's market cycles have been eerily consistent, driven by investor sentiment towards the asset. Thus, hoping for a favourable break from this pattern might be unwise.
As of the weekly closing on Feb. 4, Bitcoin was trading just below $43,000, according to data from Cointelegraph Markets Pro and TradingView.
Readers should note that this report does not constitute investment advice and that all investments carry associated risks. As such, readers should undertake their own due diligence before deciding to invest.
Published At
2/4/2024 2:05:00 PM
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