Recent analyses of Bitcoin (BTC) indicate the possibility of a decisive move in its trajectory as early as this November. This projection is based on mirroring of BTC’s price action with its earlier cyclical trends, leading up to a halving event – a process that reduces the number of new coins created and earned by miners, which can limit the supply of available Bitcoins.
Crypto analyst, Miles Deutscher, points out similar patterns observed in previous cycles, between Q2-Q4 in pre-halving years. Notably, November 21 has emerged as a potential pivot point for Bitcoin to start an upward trend towards the next halving. This analysis is supported by historical data showing that after six months of relatively flat trading in mid-2015 and 2019, BTC values began to pick up around November.
Further supporting this theory, Galaxy Trading suggests a possible Bitcoin ‘dump’ or bottom to form around November 10-15. This means the bearish trend could reverse into a bullish one, possibly leading to the next bull market.
However, counter arguments suggest that Bitcoin’s price might not solely depend on the halving event or cyclical pattern. Markus Thielen, the head researcher at crypto-financial services firm, Matrixport, states that the crucial macroeconomic factor impacting Bitcoin could be the Federal Reserve’s rate hikes. Such a scenario had occurred in 2019, leading to a significant surge in Bitcoin prices.
The Bitcoin halving is projected to happen around late April or early May. While most analysts agree that a significant bull market could arrive in the year following the Bitcoin halving, it’s worth noting that various other external factors such as global macroeconomics and the Federal Reserve’s decisions might also play a decisive role.
There is no absolute certainty in market predictions. Thus, it is advisable for investors to not rely solely on these analyses and maintain a diversified investment portfolio to mitigate possible risks. It is also essential to stay updated with developments in the crypto market, blockchain technology and government regulations affecting these spaces. No matter the projections, one thing is certain: the market’s dynamism will continue to present opportunities and challenges alike for its participants.
Source: Cointelegraph
