Bitcoin (
BTC
) has the potential to experience a significant decline and still maintain its bullish market trend and historical performance, according to the latest analysis of BTC price. Despite a 10% drop in 24 hours, the current BTC/USD performance is viewed optimistically.
Bitcoin’s bull market pullbacks typically reach around 40%, as market participants who have been involved in the industry for a long time confirm. Despite the increased volatility of BTC price around its all-time high of $69,000 in 2021, the ongoing bull run of Bitcoin remains intact. This would continue to be the case even if there were a deeper correction from the current levels of around $68,000, as indicated by data from Cointelegraph Markets Pro and TradingView.
In a recent statement, the trader known as Bags discussed the upcoming block subsidy halving and compared it to previous halving cycles. He pointed out that in all previous cycles, there were significant price pullbacks of nearly 40% before the event, followed by price discovery later on. He calculated that the potential downside from Bitcoin’s recent all-time high of $73.5k would be around $45.5k.
When questioned about the impact of inflows from US spot Bitcoin exchange-traded funds (ETFs) on the market, which was absent in previous cycles, Bags acknowledged that each bull market had its own catalysts, but they failed to prevent a drawdown.
Another analyst, Rekt Capital, also examined the price performance in relation to the halving. He compared this year’s behavior with that of the previous halving year in 2020 and concluded that Bitcoin is still in its pre-halving rally phase. He warned that BTC/USD is about to enter the riskiest part of the pre-halving phase, which he referred to as the “danger zone.” He noted that historically, Bitcoin has experienced retraces 14-28 days before the halving.
It is important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research before making any investment or trading decisions as they involve risks.