Bitcoin (BTC) had an impressive first quarter, experiencing a 64% price increase, making it one of the strongest quarters in the past three years. However, analysts are warning that this could lead to significant volatility as the Bitcoin halving approaches.
Crypto analyst Phoenix Desmond cautioned his followers about potential price fluctuations in a post on April 3. He noted that Bitcoin’s weekly and monthly closings have been outperforming, signaling unprecedented market conditions.
In the last two weeks of the first quarter, Bitcoin saw a 6.09% surge, rising from $67,234 to $71,333. This upward trend has raised speculation that the Bitcoin halving, scheduled for April 20, could trigger further price increases in the second quarter due to the expected supply shock.
Despite this, investor sentiment regarding the short-term direction of Bitcoin’s price remains neutral. Liquidations on both short and long positions have remained balanced over the past 24 hours, with $16.27 million and $16.77 million being liquidated, respectively.
A 1.5% increase in Bitcoin’s price to $66,687 could result in approximately $57.08 million worth of liquidations, while a 1% drop to $65,013 could lead to $35.14 million being liquidated.
Rekt Capital, a popular pseudonymous crypto analyst, believes that Bitcoin may not follow the same trajectory as the previous quarter. He suggests that Bitcoin could consolidate between $60,000 and $70,000 in the coming weeks leading up to the halving.
While the launch of spot Bitcoin ETFs by major asset management firms has generated interest and speculation, some foresee a potential shift in the narrative surrounding Bitcoin.
Founder of MN trading consultancy, Michael van de Poppe, expressed doubts about Bitcoin’s future in a post on April 4. He believes that Bitcoin may not be the best investment option and advised caution.
In other news, the magazine “China will intensify Bitcoin bull run, $1M by 2028: Bitcoin Man, X Hall of Flame” predicts a bullish future for Bitcoin in China, with a projected value of $1 million by 2028.