Analysts suggest Bitcoin could hit $48,000 or $51,000 before the halving, with reduced volatility hinting at steadier prices. Meanwhile, significant accumulation by large entities hints at a potential recovery.
According to Michaël van de Poppe, founder of MN Trading, Bitcoin (BTC) could reach $48,000 to $51,000 before the next halving. Van de Poppe acknowledges the current consolidation, describing the price action as “boring.” Despite this, he suggests a potential 20%+ jump before the event, less than 100 days away, based on Bitcoin’s past behavior.
Bitcoin Halving Precedents and Current Price Analysis
Before the second halving in July 2016, Bitcoin’s price surged from $392 to $604. A similar trend occurred prior to the May 2020 halving, with BTC jumping from $7,194 to $9,080. This history suggests a potential repetition of the pattern this year. However, with February underway, upward price movement needs to commence to meet the anticipated value.
Currently trading at $42,167, Bitcoin has seen a 7.96% decline in the past 30 days, with a further 1.97% drop in the last 24 hours. Volatility has contracted, evidenced by tight Bollinger Bands (BB). If these bands do not expand, BTC’s price fluctuations may remain minimal.
The lower BB band touching $42,121 indicates Bitcoin’s oversold condition, potentially signaling an impending price increase. However, any climb may be limited, possibly not exceeding $42,630 in the near term. In an extremely bullish scenario, BTC might reach $43,940, though resistance could be encountered at that level.
BTC/USD 4-Hour Chart (Source: TradingView)
Bitcoin Price Analysis and Accumulation Signals
From the observed chart, the Relative Strength Index (RSI) exhibited a downward trend, suggesting weak buying momentum. Failure to reverse this trend could potentially lead BTC below $42,000, presenting a buying opportunity at a discounted price.
Analyst Ali Martinez highlighted intense Bitcoin accumulation in a recent post, noting that accumulation trend scores were at their highest levels in nearly three years. This sustained accumulation, coupled with increased buying from large entities, indicates growing confidence in Bitcoin’s price trajectory.
#Bitcoin is witnessing one of its most significant accumulation streaks in almost 3 years!
Notably, the Accumulation Trend Score has hovered near 1 for the past 4 months, signaling that larger entities are accumulating $BTC. This trend indicates strong confidence in the market! pic.twitter.com/QcJOEhzBUb
— Ali (@ali_charts) February 1, 2024
Martinez suggests that with these indicators, Bitcoin may be presenting a “buy the dip” opportunity before a potential rally.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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