Bitcoin Pre-Halving Dip Expected: Will BTC Rally Before US Fed Decision?
20 Marzo 2024 - 10:00PM
NEWSBTC
Bitcoin remains under pressure when writing and is within a bearish
formation following sharp losses on March 19. While prices tank,
one analyst on X thinks this retracement aligns with
historical performance, especially as the network prepares to slash
miner rewards in April 2024. Bitcoin Retracement Similar To
Pre-Halving Cool-Off Of 2020 Based on the analyst’s assessment, BTC
is currently down roughly 18% from its recent swing high. This
retracement is at the same level as the ballpark 19% decline
observed before the previous halving event in 2020. It’s
worth noting that Bitcoin has historically corrected lower after
posting fresh highs before halving. Afterward, the coin rallies to
fresh all-time highs following halving, driven by a decrease in
supply. In this cycle, BTC soared to a new all-time high of $73,800
in the first two weeks of March before cooling off to spot rate, a
deviation from the usual trend. Related Reading: Analyst Bullish On
Polkadot (DOT), Predicts $17 Price Target Before April As the
Bitcoin network gears up for the halving event in mid-April 2024,
it’s crucial to note the potential market implications. Some market
observers speculate that the current drop could offer entries for
investors looking to accumulate at a lower price in anticipation of
future price gains. From the Bitcoin candlestick arrangement
in the daily chart, the least resistance path appears southwards.
Specifically, following the dip on March 19, the coin remains in a
bearish breakout pattern, finding strong rejections from the middle
Bollinger Band (BB) or the 20-day moving average. The BB is a
technical indicator for gauging volatility. Will The Federal
Reserve Revive BTC Demand? Currently, Bitcoin is steady. Even so,
only time will tell whether prices will recover, breaking above the
$70,000 level in the days leading up to the halving event in less
than a month. Further losses from spot rates mean the dip before
halving and after the pre-halving rally was much sharper than in
2020. As history clearly shows, halving is an important event in
Bitcoin. It has repeatedly proven to be a major price catalyst for
Bitcoin, as seen in the last bull cycle when prices rose to roughly
$70,000. Related Reading: Bitcoin Supply On Exchanges Hit
4-Year Low, But Why Is Price Crashing? Accordingly, the coming days
will shape how Bitcoin prices evolve in the medium to long term.
One key driver of crypto and BTC valuation will be fundamental
events, especially pronouncements from the United States Federal
Reserve (Fed). The central bank will relay its decision on interest
rates on March 20. Earlier in 2022, when interest rates were hiked,
prices tanked. Feature image from DALLE, chart from TradingView
Grafico Azioni Polkadot (COIN:DOTUSD)
Storico
Da Ago 2024 a Set 2024
Grafico Azioni Polkadot (COIN:DOTUSD)
Storico
Da Set 2023 a Set 2024