As Bitcoin approaches the critical period known as the halving, historical patterns suggest a potential dip in its value, a phenomenon termed the “danger zone.” Currently valued at around $68,000, Bitcoin is on the brink of this precarious phase, which traditionally sees a price decrease in the weeks leading up to the halving event. Crypto analyst Rekt Capital highlighted this trend, noting that Bitcoin is about to enter a period historically marked by significant retracements.
Historically, Bitcoin has experienced declines of 40% and 20% in the 14 to 28 days preceding its 2016 and 2020 halvings, respectively. Rekt Capital‘s analysis also points out a pattern of pre-halving rallies followed by retracements, a proven accurate prediction with Bitcoin’s recent price movements. Surprisingly, Bitcoin reached a new high in March, surpassing the previous cycle’s peak for the first time ever before a halving.
With the next halving expected in under 33 days, Bitcoin has already shown volatility, dropping 8.5% from its mid-March high. Despite these fluctuations, leading figures in the cryptocurrency industry remain optimistic about Bitcoin’s future.
Binance CEO Richard Teng expressed confidence at a Bangkok event, predicting Bitcoin could exceed $80,000 by year-end, fueled by institutional investments and the dynamic between supply and demand. He acknowledged that the journey to higher prices would include fluctuations.
Similarly, Crypto.com‘s co-founder and CEO Kris Marszalek viewed the recent price drop as a positive correction, indicative of a healthy market adjustment. He anticipates a gradual increase in Bitcoin’s value, emphasizing its long-term investment appeal over short-term volatility.
Both CEOs underscore a bullish outlook on Bitcoin, seeing the current market movements as steps toward greater stability and higher valuations in the cryptocurrency’s lifecycle.
