Bitcoin has seen strong price gains in recent months, mostly buoyed by interest surrounding the first ever exchange traded fund for the crypto currency, which was approved by regulators in January
Crypto market analysts have forecasted new all-time price highs for bitcoin in 2024, however some have warned of a short-term sell-off in the coming weeks.
Analysis from market intelligence platform DecenTrader forecast a downtrend in the build-up to the momentous ‘halving’ event, which will see mining rewards slashed in half for the first time in around four years.
Bitcoin’s halving is currently scheduled for 18 April, with the current price of nearly $42,000 expected to decline by more than 10% before then, per DecenTrader’s analysis.
Circa 75 days remain until the bitcoin halving. This is important if we make a simple assumption, that there will be buying interest some time before the halving, a DecenTrader blog post speculated.
This would mean that bitcoin has nearly 30 days from now to meander through its corrective phase before finding the FOMO demand anticipated, it stated.
Bitcoin has seen strong price gains in recent months, mostly buoyed by interest surrounding the first ever exchange traded fund (ETF) for the crypto currency, which was approved by regulators in January.
The upcoming halving has also boosted market sentiment, with the event typically preceding record-breaking rallies.
The latest market commentary from the trading platform Coinbase said the event, combined with expected rate reductions in the US, would create “a positive setup for the asset class more broadly”.
Despite the prospect of short-term losses, some experts have pointed to current market trends to suggest that the world’s most valuable crypto currency has a sturdy floor price that traders will not sell below.
Bitcoin 200 week moving average is $31,000. Bitcoin has never gone below 200WMA. So 31k might be the absolute floor, and bitcoin might never see 31k ever again, said pseudonymous crypto analyst PlanB.
The popular analyst noted that such a forecast could be derailed by a so-called black swan event, such as a major geopolitical event disrupting financial markets, or a ban on crypto currency by a leading economy.
PlanB has gained a popular following among bitcoin investors after popularising the stock-to-flow model that uses halving cycles to forecast price trajectories.