- Bitcoin (BTC) is in a “danger zone” with only a little over a month to go before the halving strikes.
- Analysts believe that major corrections will take place in the few weeks leading up to the event.
- The long-term outlook of cryptocurrency firms toward the market remains on a positive note though.
Prices to Get Rekt Before Halving
With only 32 days to go before the Bitcoin halving, analysts warned investors to brace themselves for a major dip between Tuesday and Wednesday. This is no FUD, but according to the people at Rekt Capital, historical trends indicate that movements like this happen 14 to 28 days prior to the event.
“In 2 days, Bitcoin will officially enter the ‘Danger Zone’ where historical pre-halving retraces have begun,” cautioned Rekt. Based on its charts, the cryptocurrency slumped as low as 40% before the second halving in 2016 and 20% leading to the third halving in 2020.
Bitcoin Now
As of this writing at 7:40 AM UTC, Bitcoin has shown a 4% recovery to $68,100 in the 24-hour frame. This brings up the overall valuation of its 19.66 million circulating supply to $1.34 trillion, which allows it to keep its ninth position among the top 10 assets in the world by market cap.
Meanwhile, trading volume dunked by 20% as $41.74 billion worth of BTC moved between wallets and exchanges within the period. The same span saw prices pivot between a $64,545.32 low and a $68,897.13 high.
BTC achieved a series of all-time highs (ATHs) in the past few weeks, which culminated in $73,750.07 last March 14. Such height made it surpass silver’s market cap temporarily as its supply blew the roof off at $1.44 trillion.
On the bright side, Bitcoin has shown major leaps since the long crypto winter back in 2022 to 2023. Over a year, the digital currency rose by more than 148% as it broke new ATHs.
Optimism Runs High
Going back to the record books, the upcoming BTC price movements may be no different than the market’s behavior during the past halving epochs. With the stronger demand for the digital asset these days, thanks to the rising institutional demand primarily caused by the regulatory approval of several Bitcoin exchange-traded products (ETPs) and the aggressive accumulation of financial firms, the upcoming dips may only serve as a perfect launch pad for Bitcoin’s new frontier as its supply tightens post-halving.
Binance CEO Richard Teng aired his optimism toward the crypto asset during a speech in Bangkok on Sunday. Citing the abovementioned factors as the basis, he believes $80,000 per BTC may not be far ahead.
Crypto.com co-founder and CEO Kris Marszalek expressed the same view in an interview with CNBC’s Squawk Box. He said the latest price drop in Bitcoin was a “healthy move” as it removed some of the leverage that built up within its ecosystem. This could pave the way to “less sudden moves” for its values and a “steady ramp-up” in its prices over the years.