Bitcoin (BTC) has the potential to experience a significant drop in price and still maintain its bullish market trend and historical performance, according to the latest analysis. Despite a 10% decline in the past 24 hours, BTC/USD is still showing positive signs.
Market experts who have been in the industry for a long time agree that Bitcoin is following the usual path towards new record highs. Even with the increased volatility around the $69,000 mark, the current bull run for Bitcoin remains strong. This would still hold true even if there were a deeper correction from the current price level of around $68,000, as indicated by data from Cointelegraph Markets Pro and TradingView.
In a recent comment on X, the pseudonymous trader known as Bags focused on the upcoming block subsidy halving. He compared it to previous halving cycles, all of which saw significant price pullbacks of nearly 40% before entering a phase of price discovery. Bags calculated that Bitcoin could potentially experience a downside of $45.5K from its recent all-time high of $73.5K.
When asked about the impact of inflows from US spot Bitcoin exchange-traded funds (ETFs) on the market, Bags noted that previous bull markets also had their own catalysts that didn’t prevent a drawdown.
Another analyst, Rekt Capital, is also closely monitoring the price performance in relation to the halving. He compared the behavior of Bitcoin this year to the last halving year in 2020 and concluded that Bitcoin is still in its pre-halving rally phase. However, he cautioned that BTC/USD is entering the riskiest part of the pre-halving phase, which he referred to as the “danger zone.” Historically, Bitcoin has experienced retracements 14-28 days before the halving.
It’s important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research before making any trading or investment decisions.