Bitcoin is likely to hit an all-time high (ATH) before the year ends, but not without a significant test of investors’ resolve, according to popular crypto analyst DecenTrader.
In a recent report, the analyst predicted a rise in Bitcoin’s price ahead of the upcoming halving, projecting a post-halving sell-off before a potential ascent to a new ATH in the fourth quarter of 2024.
Notably, the analyst emphasized the importance of understanding the classic behaviour of Bitcoin during the year of halving events and outlined potential scenarios for the cryptocurrency’s price movement. According to him, If Bitcoin maintains its momentum, supported by an inverted head and shoulders reversal pattern and positive net inflows into ETFs, the cryptocurrency could rise to $48,000 or $49,000 before the halving.
However, based on historical patterns, the analyst warned that, Bitcoin is likely to undergo a correction phase approximately two months before the halving, urging investors to brace themselves.
“To some extent, the close proximity of the halving is capping the downside on BTC in my opinion. For now, it seems reasonable to expect some continued choppy consolidation until early March, before some additional FOMO towards the $49k level followed by a sell-the-news event again.” He wrote, adding, “Bitcoin has a tendency to front run the sell-the-news with a halving, so bear that in mind.”
According to the analyst, the correction could bring the Bitcoin price down to around $37,000 over the next four to five weeks. He also highlighted the order book on Binance, which currently indicates buying interest within the range of $35,500 to $38,500, “fitting with the corrective idea and there being a floor somewhere around $37k.”
That said, while Decentrader acknowledged the potential for a correction, he also presented an alternative scenario. The pundit noted that after previous halvings, it took approximately 220 to 240 days for Bitcoin to reach new all-time highs. He thus anticipated a similar trend, with the cryptocurrency hitting a new ATH in the mid-to-late fourth quarter of 2024, allowing for a correction period. With Bitcoin presently trading at $43,559, hitting an ATH would mean surging by over 60.21% to surpass the 2021 ATH of $68,789.
Notably, BitMEX CEO Arthur Hayes has recently echoed similar sentiments, emphasizing the likelihood of a short-term drop in Bitcoin’s value to $35,000, attributing it to what he deemed as “excessive” inflation.
Last week, popular crypto analyst Ali Martinez also predicted a potential 7% to 30% pullback within a month post-halving based on historical data. However, contrary to Decentrader’s market top prediction, Martinez noted he expects BTC to hit an ATH around April or October 2025.