Bitcoin (BTC) may be preparing for a correction before the upcoming halving, according to historical chart patterns. Despite reaching a new all-time high of approximately $73,700 on March 13, there are indications of overheating, and the price could experience a significant drop before the halving in April. This aligns with the 20% pre-halving correction in 2020 and the 38% retracement before the 2016 halving, as noted by pseudonymous analyst Rekt Capital. The analyst suggests that the correction could last up to 77 days, although it may be smaller than in previous cycles.
However, this time may be different. The current cycle diverges from previous ones because Bitcoin has already set a new record high before the halving has even occurred. Additionally, Bitcoin has yet to catch up to its growth trajectory from previous halving cycles, according to historical data shared by Ecoinometrics. Therefore, there is still room for the current price action to continue, especially since the previous all-time high price can now serve as a launchpad for further upside before the halving.
Rekt Capital highlights that Bitcoin has successfully retested the old all-time high of $69,200, which now acts as a new support line. Looking ahead, wealth management firm Bernstein expects Bitcoin to break out to around $150,000 following the halving by mid-2025. They attribute this expectation to the elevated demand for spot Bitcoin exchange-traded funds (ETFs) and advise clients to invest in Bitcoin miners. However, Cathie Wood’s ARK Invest has even higher expectations, with a long-term Bitcoin price target of over $1 million.
Please note that this article does not provide investment advice or recommendations. Readers should conduct their own research and exercise caution when making investment decisions.