Bitcoin (BTC) fanatics and traders are maintaining a watchful eye on the ever-volatile cryptocurrency market because the clock ticks nearer to the extremely anticipated halving occasion in April 2024.
Benjamin Cowen, a well known crypto analyst with a considerable following, has raised considerations concerning the potential for a major worth drop in Bitcoin earlier than this upcoming halving.
In a current interview with Scott Melker, Cowen delved into the historic patterns surrounding the alpha coin’s worth actions within the lead-up to halving occasions.
He highlighted that, whereas he didn’t explicitly predict a 50% drop, historic knowledge means that such a decline isn’t out of the query. Taking a look at previous cycles, Cowen revealed that BTC sometimes experiences a pointy lower in worth previous to a halving occasion.
In his phrases, “What usually occurs is Bitcoin halves [in price] earlier than the halving, after which individuals are like, ‘Oh, effectively, that’s what the halving meant.’”
Historic Precedent: Value Conduct Earlier than Halving
As an example his level, Cowen pointed to the earlier market cycles, notably the drop that occurred forward of the pandemic and the one previous to that. Every time, the king coin’s worth plummeted by roughly 50% earlier than embarking on its outstanding bull run.
The commonality of those drops, particularly those that initiated in the summertime, led Cowen to ponder whether or not the present market would possibly nonetheless be throughout the bounds of a 50% decline. In that case, it may probably fall to round $15,000.
Cowen’s concern a few looming BTC worth drop isn’t unfounded. One of many key components contributing to this apprehension is the dwindling liquidity throughout the cryptocurrency market and varied danger asset markets.
As liquidity decreases, property like Bitcoin can develop into extra inclined to sharp declines. It’s an indication that has traditionally preceded vital market actions, and Cowen believes that this time might be no completely different.
Bitcoin’s Value Amidst Societal Unrest
On the opposite aspect of the Bitcoin spectrum, vocal crypto advocate Max Keiser shared his ideas on the cryptocurrency’s future worth trajectory. Many Bitcoin fanatics have been inquiring about when Bitcoin will attain the fabled $220,000 mark.
Nevertheless, Keiser cautions that these ranges are sometimes achieved “AFTER social unrest and societal breakdown are irreversibly inflicting havoc.”
Individuals ask ‘When’ $220,000 for #Bitcoin ?
Consider, #Bitcoin trades at these ranges AFTER social unrest and societal breakdown are irreversibly inflicting havoc.
It’s important to put together for greater costs AND financial collapse.
— Max Keiser (@maxkeiser) October 17, 2023
He identified that the world is at the moment witnessing widespread social unrest in lots of main cities, pushed by geopolitical turmoil in a number of nations. Keiser’s warning rings clear: folks, particularly Bitcoin holders, needs to be ready for the potential of greater costs coinciding with financial collapse.
BTCUSD barely previous the midway mark to the $29K territory. Chart: TradingView.com
The crypto market is as unpredictable as ever, with Bitcoin at the moment buying and selling at $28,582 through CoinGecko, displaying a 1.8% acquire over the previous 24 hours and a 5.7% improve over the previous week.
Because the neighborhood eagerly anticipates the 2024 halving occasion, analysts like Cowen and Bitcoin advocates like Keiser present important insights and warnings for each seasoned traders and newcomers alike, reinforcing the necessity for cautious optimism within the ever-evolving world of cryptocurrencies.
Featured picture from Enterprise Insider