Bitcoin is following a similar trajectory to what it experienced after the 2016 Bitcoin halving event, according to crypto traders. One indicator suggests that it may be approaching its local bottom, while another indicates that it could reach a price of $350,000 during the peak of this cycle. Pseudonymous trader Rekt Capital noted that Bitcoin has replicated the history of 2016, with a downside wick below its current re-accumulation range occurring within a three-week window after the halving. The re-accumulation range at this point is considered to be any price below $61,081, which is where Bitcoin is currently trading.
Rekt Capital further highlighted that Bitcoin is in the “last pre-halving retrace” stage. In 2016, this stage was followed by a 48% spike six months later. However, the price drawdown from the all-time high chart suggests a more ambitious price increase. Timothy Peterson, founder and investment manager at Cane Island Alternative Advisors, used this chart to estimate that Bitcoin’s price could rise nearly sixfold by the beginning of 2025. Peterson predicted that the peak value of this cycle could be between $175,000 and $350,000 within the next nine months, based on adoption and prior drawdowns. He also stated that the bull market will likely end in January 2025.
On the other hand, the daily 100 moving average, a key technical indicator for predicting long-term Bitcoin price trends, suggests that Bitcoin’s price may be hovering around its local bottom. Pseudonymous trader Daan Crypto traders drew parallels to a similar formation seen after the approval of 11 spot Bitcoin exchange-traded funds in January, which led to a 32% price increase just a month later.
It is important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research and exercise caution when making investment decisions.