Bitcoin Halving Retrace Spooks Investors: What Is It And Why Does It Matter?
19 Marzo 2024 - 4:00PM
NEWSBTC
The Bitcoin price crash over the past day has taken crypto
investors by surprise, leading to a full bleed day for the
industry. However, while this may have come as a shock to many,
some were able to call it out ahead of time. One of those is Rent
Capital, which said the decline was in line with Bitcoin’s
established halving trend. An Expected Crash The analysis posted by
Rest Capital outlines the trends that Bitcoin has followed leading
up to its halving months. In 2020, the halving fell on the month of
May and in the month leading up to the rally, the Bitcoin price saw
an approximately 20% decline. Related Reading: Solana Surpasses
Ethereum In Major Metric Amid Surge Above $200 Over the years,
Bitcoin has followed similar patterns to usher in the anticipated
halving and while there has been some deviation this time around,
the digital asset looks to be maintain some trends. One of these
trends is the price crash before the halving. As Rekt Capital’s
analysis shows, Bitcoin is right in region of where this crash is
expected to happen. The previous trends have seen the price fall
between 20% and 38% in the month before the halving. So taking this
into account, the BTC price could crash around 25% on average if it
sticks to this trend. The crypto analyst also revealed their target
for if Bitcoin follows this trend. The crash is expected to push
the BTC price below the $40,000. However, if the average plays out,
then the price could bottom out above $40,000 before rebounding.
Why This Crash Is Important For Bitcoin The crash is a confirmation
that the Bitcoin price is following the established pre-halving
trend and also confirms the incoming bull market. Going by the
previous trends, the halving takes place after the crash, following
which there is some upside the is seen with the cryptocurrency.
Related Reading: Is Ripple Behind The XRP Price Crash? Massive
Selling Spree Sparks Concern Then, in the months following the
halving, there is massive accumulation that serves as a precursor
to the bull market. In this case, this accumulation is expected to
begin sometime in April 2024 and then continue on for a few months.
The crash, as Rekt Capital points out, also serves as the last
opportunity for cryptocurrency investors to get into position at
the lowest prices. This is because once the halving is complete and
the bull market begins, low prices become a thing of the past. At
the time of writing, the BTC price is seeing minor recovery from
its crash below $63,000. It I trading at $63,500, but with a 5.91%
decline on the daily chart and a 12.19% decline on the weekly
chart, according to CoinMarketCap. BTC price drops to $62,300 |
Source: BTCUSD on Tradingview.com Featured image from Kaspersky,
chart from Tradingview.com
Ripple (COIN:XRPUSD)
Gráfica de Acción Histórica
De Mar 2024 a Abr 2024
Ripple (COIN:XRPUSD)
Gráfica de Acción Histórica
De Abr 2023 a Abr 2024