A recent market update by DecenTrader has projected that Bitcoin will likely hit a new all-time peak by the year 2024, following a pattern associated with its halving cycle. However, analysts forecast a period of stagnation in Bitcoin’s price before it begins its climb. The update specifically predicts a sideways trend in the price of Bitcoin roughly a month preceding the anticipated halving event.
Anticipation Builds as Halving Approaches
DecenTrader’s CEO Filbfilb, in outlining the expected trajectory for Bitcoin, suggests that buying activity will escalate roughly two months before the halving, which is estimated to occur around April 18, 2024. This buying surge is foreseen to manifest by mid-March, with a timeframe of about 30 days for a corrective phase before a wave of ‘Fear of Missing Out’ (FOMO) demand kicks in. The anticipated sequence is reminiscent of past cycles, where an initial sell-off, akin to those seen at the launch of spot Bitcoin exchange-traded funds, occurred just before substantial gains.
Market watchers speculate that the BTC/USD rate could hit a two-year peak of $49,000 before experiencing a sell-off in response to the ETF launches. Nevertheless, post-halving, Bitcoin is expected to enter a phase of price discovery, culminating in all-time high values by the latter part of 2024. This pattern mirrors the behavior observed during the 2020 halving year, with a period for correction factored in to test the resilience of investor sentiment.
External Factors Impacting Bitcoin’s Trajectory
The forecast for Bitcoin’s price performance is further complicated by several macroeconomic and geopolitical factors that could influence broader market volatility in the first quarter of 2024. Notably, the anticipated challenges within the US banking system, which might see peak issues in March, pose a risk to asset prices. While some analysts are cautious, predicting that a new all-time high for Bitcoin may not materialize until the end of 2025, the cyclic nature of Bitcoin’s market and its sentiment-driven valuation continue to make precise predictions challenging.
As of the latest data from TradingView, Bitcoin is trading just above the $43,000 mark, as the market awaits the weekly close on February 4. The resilience of the cryptocurrency amidst various external pressures remains a focal point for investors and analysts alike as they navigate through the fluctuating landscape.