Bitcoin, the leading cryptocurrency, remains unyielding above the $26,000 benchmark despite substantial equity market sell-offs and a rallying U.S. dollar. This resilience is indeed commendable for the crypto titan. As the week started, Bitcoin showcased a slight uptick, standing at approximately $26,515.
In this turbulent backdrop, industry experts continue to chart out Bitcoin’s potential price trajectory. A significant buzz was created when “Titan of Crypto” forecasted Bitcoin’s imminent climb to $48,700 before the upcoming halving. This bold prediction hinges on the consistent historical trend where Bitcoin has gravitated towards the 78.6% Fibonacci retracement level prior to every halving. Delving into the past, during the last four halving episodes, Bitcoin touched this critical point four months (2013), two months (2016), and twelve months (2020) ahead of each event. Considering the next halving is roughly seven months away, speculations suggest that Bitcoin could hit the aforementioned Fibonacci level within this window.
Concurrently, PlanB, a recognized cryptocurrency aficionado, remains bullish about Bitcoin’s prospects. Earlier this week, he reinforced his stance, reminiscing Bitcoin’s low of $15,500 in November 2022 and projecting a surge leading up to the 2024 halving. His anticipations for post-2024 halving range between $32,000 and a bullish $66,000. Even more audaciously, he predicts a staggering $1 million for Bitcoin by 2025, a claim that gains ground considering his historically accurate PlanB Stock-to-Flow (S2F) model.
In contrast, “Rekt Capital” aligns with past patterns, drawing similarities with the 2019 Bitcoin cycle. He hints at a potential decrease, foreseeing a low of around $20,300 by mid-February 2024. Factoring in historical trends, Bitcoin’s peak is speculated to be in either mid-September or mid-October 2025, considering the 518 to 546 days it historically takes post-halving.
For those unfamiliar, the Bitcoin halving, scheduled every four years, reduces the generation rate of new Bitcoins by half. This mechanism inherently makes Bitcoin deflationary. Historical data indicates that halving impacts Bitcoin’s price considerably due to the basic principle of reduced supply leading to increased demand. The next halving is earmarked for April 2024.
While debates continue about Bitcoin’s potential spike pre-halving, the lingering question remains – will this occasion diverge from the historical norm?