Bitcoin (BTC) fanatics and traders are retaining 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 in regards to the potential for a big value 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 value actions within the lead-up to halving occasions.
He highlighted that, whereas he didn’t explicitly predict a 50% drop, historic information means that such a decline just isn’t out of the query. Looking at previous cycles, Cowen revealed that BTC sometimes experiences a pointy lower in worth previous to a halving occasion.
In his phrases, “What normally happens is Bitcoin halves [in price] before the halving, and then people are like, ‘Oh, well, that’s what the halving meant.’”
Historical Precedent: Price Behavior Before Halving
To illustrate his level, Cowen pointed to the earlier market cycles, notably the drop that occurred forward of the pandemic and the one previous to that. Each 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 inside the bounds of a 50% decline. If so, it might probably fall to round $15,000.
Cowen’s concern a few looming BTC value drop isn’t unfounded. One of the important thing components contributing to this apprehension is the dwindling liquidity inside the cryptocurrency market and numerous danger asset markets.
As liquidity decreases, belongings like Bitcoin can change into extra prone 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 Price Amidst Societal Unrest
On the opposite facet of the Bitcoin spectrum, vocal crypto advocate Max Keiser shared his ideas on the cryptocurrency’s future value trajectory. Many Bitcoin fanatics have been inquiring about when Bitcoin will attain the fabled $220,000 mark.
However, Keiser cautions that these ranges are sometimes achieved “AFTER social unrest and societal breakdown are irreversibly causing havoc.”
People ask ‘When’ $220,000 for #Bitcoin ?
Keep in thoughts, #Bitcoin trades at these ranges AFTER social unrest and societal breakdown are irreversibly inflicting havoc.
You have to organize for larger costs AND financial collapse.
Good luck!
— 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 international locations. Keiser’s warning rings clear: folks, particularly Bitcoin holders, needs to be ready for the potential of larger 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 by way of CoinGecko, exhibiting a 1.8% acquire over the previous 24 hours and a 5.7% improve over the previous week.
As 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 Business Insider
