Bitcoin is currently 200 days away from its upcoming halving event, a phenomenon that has historically triggered price rallies, often surpassing previous all-time highs. A recent price chart shared by the analyst “thescalpingpro” on October 9 suggests that the world’s most valuable cryptocurrency is poised not only to break its 2021 highs but to achieve new record highs after the 2024 halving.
Early Indicators of a Bullish Rally: 200 Days Before the Halving
At present, Bitcoin has experienced a 60% drop from its previous all-time highs in 2021. Interestingly, this decline mirrors a pattern observed before the 2019 Bitcoin halving. Back then, much like the current situation, Bitcoin witnessed a 60% decrease from its 2017 peak of around $20,000.
Historical data reveals that Bitcoin prices often rebound vigorously following substantial declines from previous highs. These rebounds are typically propelled by the momentum generated by the halving event, which pushes prices further away from cyclical lows. Link to chart
Bitcoin halving, occurring every four years, involves reducing the reward for mining a Bitcoin block by half. This built-in protocol feature aims to slow the issuance of new Bitcoin. As a result, the decrease in the number of coins entering circulation during halving leads to reduced inflation, which historically supports price appreciation.
While the impact of halving has been extensively studied, the sequence of events leading up to this event seems to be generating increased demand. As previously observed, Bitcoin experienced a roughly 60% decline from its all-time highs approximately 200 days before the 2016 and 2019 halvings.
Remarkably, Bitcoin’s current price aligns closely with its value 200 days before previous halving events. Given this near-identical replication of past patterns, “thescalpingpro” is optimistic that Bitcoin may follow a familiar cycle.
Bitcoin’s Ascent to $48,000 Prior to Halving
The possibility of Bitcoin reaching all-time highs and surpassing them, as hinted earlier, could be realized after the halving event. However, another analyst believes that Bitcoin could rally to $48,000 before the halving takes place.
This analysis is based on critical support and resistance levels established by Fibonacci retracement levels. The analyst is confident that Bitcoin will retest the 61.8% retracement level from the recent 2021 to 2022 range, positioning Bitcoin at $48,000 upon recovery.
The race to reach this level is expected to be further propelled by the “halving momentum” and the transition from bear to bull markets signaled by various indicators. These indicators include the Relative Strength Index (RSI), Moving Average Convergence Divergence (MACD), and the on-balance volume of major exchanges, all of which currently appear oversold. [Source: Stockmoney Lizard on X]