Key Points:
- Bitcoin price may dip 12% before finding strong support.
- History shows Bitcoin often rallies within 400 days after halving.
- Whale accumulation suggests confidence in future price gains.
Bitcoin Price Expected to Drop 12% Before Major Breakout
Bitcoin‘s price has been moving sideways since its fourth halving on April 19th. Currently trading around $58,165, Bitcoin has seen a slight dip of 1.5%. The price has struggled to stay above $60,000, and some indicators suggest a 12% drop may occur before Bitcoin finds strong support around the $50,000 level.
This expected dip is part of a broader pattern involving two downward-sloping trendlines. These could temporarily push the price lower, but they might also set the stage for a strong breakout. If the market follows this pattern, Bitcoin’s price could surge to $83,450, continuing its long-term upward movement.
Historical Data Points to 400-Day Post-Halving Rally
Bitcoin has a history of significant price rallies within 400-500 days following each halving event. These halvings, which cut the rewards for mining new blocks in half, have often led to new all-time highs. Past halvings in 2012, 2016, and 2020 were all followed by major price increases within this timeframe.
Recent analysis suggests that Bitcoin could follow this pattern again, with a significant rally expected by 2024. This indicates that while the market currently faces uncertainty, a strong price surge could be coming, aligning with Bitcoin’s historical post-halving behavior.
https://x.com/BitcoinChartBot/status/1830568895197168033
Whale Accumulation Reflects Confidence in Future Gains
Large Bitcoin holders, known as whales, are showing confidence in the asset’s future. Data from Santiment analytics reveals that addresses holding between 100,000 and 1,000,000 BTC have been steadily increasing their holdings since late July. This accumulation suggests that major investors believe in Bitcoin’s long-term potential, despite the current price consolidation.
However, some caution is advised. The daily Exponential Moving Averages (EMAs) for 20, 50, 100, and 200 days are nearing a bearish crossover. This could extend the consolidation phase, even as historical trends and whale activity point toward a possible breakout.
Looking Forward
Bitcoin’s price is at a critical point, with a potential 12% drop before it finds key support. Historical trends suggest a strong rally could follow within 400 days post-halving, possibly leading to new all-time highs. Whale accumulation adds further confidence in Bitcoin’s future, though short-term caution remains necessary. Investors should watch key support levels and market signals as Bitcoin prepares for its next significant move.
