Bitcoin (BTC) may be on the verge of a correction before the upcoming halving, as indicated by historical chart patterns. Despite reaching a new all-time high of approximately $73,700 on March 13, there are signs of overheating in the market. Pseudonymous analyst Rekt Capital suggests that a pre-halving correction is likely, citing a 20% drop before the 2020 halving and a 38% retracement before the 2016 halving. The analyst predicts a potential retracement that could last up to 77 days, although it may be smaller compared to previous cycles.
However, this time around, the current cycle differs from previous ones. Bitcoin has already achieved a record high before the halving, which is unprecedented. Additionally, Bitcoin has yet to catch up to its growth trajectory from previous halving cycles, indicating that there is still room for the price to rise. The previous all-time high can now act as a launchpad for further upside potential before the halving.
Wealth management firm Bernstein expects Bitcoin to break out to around $150,000 following the halving by mid-2025. The firm’s analysts, Gautam Chhugani and Mahika Sapra, are confident in their price target due to the elevated demand for spot Bitcoin ETFs. They also advise clients to invest in Bitcoin miners, considering the recent underperformance as an opportunity before the halving. However, Cathie Wood’s ARK Invest has even higher expectations, with a long-term Bitcoin price target of over $1 million.
Disclaimer: This article does not provide investment advice or recommendations. Readers are advised to conduct their own research and make informed decisions regarding investments and trading moves, as they involve risks.