Cryptocurrency experts are painting an optimistic picture for Bitcoin‘s BTC/USD future value as it reached the $52K level on Wednesday.
What Happened: The rise in Bitcoin’s value corresponds with the successful launch of spot Bitcoin ETFs, which have been on the market for only a month. These funds have seen inflows surpassing $3 billion, an achievement rarely seen so soon after an ETF launch.
“$BTC has broken the 78.6% Fibonacci level for the first time ever pre-halving. A pre-halving parabolic move to the $200k zone seems inevitable at this point,” cryptocurrency analyst Gert van Lagen said.
The “halving” is an event in the world of Bitcoin, occurring approximately every four years (or after 210,000 blocks have been mined). During the halving, Bitcoin miners’ reward for adding a new block to the blockchain is cut in half. This process effectively reduces the rate at which new bitcoins are generated, making the cryptocurrency more scarce
Supporting the bullish sentiment, pseudonymous analyst CrediBULL Crypto suggested that a rapid price increase is on the horizon. “That’s a picture-perfect break and retest on the daily. Send Bitcoin to $70,000+ with haste,” the analyst said.
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Why It Matters: Another pseudonymous analyst Rekt Capital outlined a detailed analysis of Bitcoin’s market cycles related to halving events. The analysis shows five distinct phases, with the first phase of “Pre-Halving Downside” declared complete as indicated by this week’s new weekly candle close, signaling the start of the “Pre-Halving Rally” phase.
Rekt Capital explained that, historically, Bitcoin sees a rally about two months before the halving as investors engage in “Buy the Hype” behaviors, aiming to capitalize on the rally. However, it’s common to see a “Pre-Halving Retrace” shortly before the halving as traders seek to cash in on their investments.
After the retrace, a period of “Re-Accumulation” typically follows, which can last for several months, leading to a “Parabolic Uptrend” where Bitcoin’s price could exponentially rise, potentially reaching new all-time highs.
Bitcoin has seen a dramatic one-hour surge, adding $1,000 to its value and contributing to the cryptocurrency market’s overall worth as it edges closer to the $2 trillion mark. Currently, Bitcoin’s market capitalization stands at $1 trillion.
Price Action: At the time of writing, Bitcoin was trading at $52,294, up 1.87% over the past 24 hours, as reported by Benzinga Pro.
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