Bitcoin’s BTC/USD sideways price action sparked new discussion about the halving cycle theory playing out correctly.
What Happened: Technical analyst CryptoCon thinks Bitcoin could be set for a second early top, or "echo high" in August. The halving cycle theory proposes that every major high in Bitcoin's value is followed by a secondary peak, which CryptoCon refers to as an "echo high."
The analyst noted that August has twice been the month for second early tops, specifically in 2012 and 2020. CryptoCon further highlighted that the "echo highs" for the "blue years" (election years) have historically occurred in January and February, with March also falling within the expected range.
Daan Crypto Trades flagged the presence of liquidity at nearby levels. The trader estimated that if Bitcoin chases its June 7 highs, it could break all records. He also highlighted downside wicks around $63,000-$63,500, indicating potential long stops below.
Also Read: Bitcoin As Store Of Value? Goldman Sachs CEO David Solomon Sees Such A Case
Why It Matters: While these historical trends can provide insights, they do not guarantee future performance.
Still, many traders refer to previous cycles to find patterns for Bitcoin.
Crypto trader El Crypto Prof noted that the current level is Bitcoin's monthly close above the 2021 all-time high. He predicts a breakout soon.
Price Action: In the past 24 hours, BTC has been trading relatively flat at $66,171.
What’s Next: The influence of Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.
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© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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