Bitcoin is rising again after retreating from a new all-time high (ATH) of $73,750. Market participants are optimistic that Bitcoin will surpass its recent ATH and set a new record after the upcoming halving.
According to entrepreneurs technology development, Bitcoin closed above the Bollinger Band track for two consecutive months. Historically, this bullish pattern has resulted in higher Bitcoin prices.
Cryptocurrency Entrepreneurs Identify Bullish Pattern for Bitcoin
technology developed theory Depends on Bitcoin’s past price action. TechDev said that whenever BTC remains above the Bollinger Band track for two consecutive months, its value doubles. This increase usually occurs within three months before its price falls again.
TechDev therefore believes that this technical indicator points to a major breakout for Bitcoin in the coming weeks.
This doesn’t happen often.#bitcoin It has closed above the Bollinger Bands for two consecutive months.
Each time it doubles 3 months before the next red candle. pic.twitter.com/veOOOmT8Id
— TechDev (@TechDev_52) April 7, 2024
Cryptocurrency investors react to this article gem detector Notice the bullish chart pattern. However, growth is not guaranteed as the market remains unstable.
Another analyst, crypto moon, shared a more bullish view on the chart pattern. He said that if BTC repeats the fractal pattern of December 2020, it could rise to $140,000 within four weeks.
In addition, the CEO of SkyBridge Capital said in an interview with CNBC Anthony Scaramucci, predicting that BTC may reach a high of $170,000.he believe The trading price of Bitcoin can be half of the market value of gold, which is equivalent to an increase of nearly 6-10 times.
It is worth noting that Bitcoin’s total market capitalization is $1.35 trillion, while gold’s total market capitalization is $15.8 trillion. For Bitcoin to reach half the market capitalization of gold, its value must increase at least six times. If this happens, the price of Bitcoin will be pushed to over $400,000 per coin.
However, Scaramucci affim This growth won’t happen overnight, and there will be significant price swings. The CEO also noted that Bitcoin has gained more than 140% in the past year. He believes that high demand for spot ETFs drove Bitcoin to a record high last month.
Meanwhile, we are just days away from the expected Bitcoin halving, which is expected to cut block rewards in half. It is worth noting that before each Bitcoin halving, the price of Bitcoin tends to rise due to strong demand as investors look forward to a post-halving rebound.
This growth was observed in the current cycle as BTC reached new highs above $73,000 in March. However, since the situation of each halving cycle is different, there is no guarantee that the price will rise after the halving.
Nonetheless, the upcoming halving on April 20 may cause Bitcoin prices to finally surge. This is because this may create a supply shortage as the mining reward will be reduced from 6.25 BTC to 3.125 BTC.
Coinbase exchange outlines why upcoming BTC halving may be different
Historically, within the first ninety days after a halving, Bitcoin typically falls below its halving value. However, Coinbase explain It may be different this time, with possible reasons noted.
According to Coinbase, unlike previous halvings, the just-released spot BTC ETF has fundamentally changed the market dynamics of Bitcoin. Spot BTC ETFs record massive daily inflows, changing Bitcoin’s supply and demand dynamics. Therefore, BTC demand will increase significantly until 2024, halving compared to before.
Additionally, there are now fewer Bitcoins available for trading, according to 21Shares Report. Unlike previous halvings, the ongoing Bitcoin rally has made miners reluctant to sell the Bitcoin they hold in their reserves.
Furthermore, if the Fed lowers base interest rate, U.S. Treasury yields could weaken, making risk assets like Bitcoin more attractive to investors. Additionally, shifts in global monetary policy could trigger an economic recession, stimulating demand for alternative stores of value such as Bitcoin.
Therefore, unlike other halvings, the coming months suggest a different outcome for Bitcoin after the halving.
