Bitcoin Halving and Potential Downtrend
Cryptocurrency investors are buzzing about the upcoming Bitcoin halving, hoping it will boost the market. But analyst Benjamin Cowen warns that Bitcoin’s price could follow a historical pattern and dip.
Cowen’s Prediction
Cowen noticed a trend that suggests Bitcoin’s price may decline after the halving. He believes it could follow the same path as it did when it entered the spot ETF during the previous halving.
Possible Outcomes
Cowen emphasizes that patterns don’t always repeat exactly. However, he believes it’s important to consider the possibility of a similar trend.
If ALT/BTC pairs have collapsed by the time of the halving, Cowen predicts a downside trend. But if they haven’t, there could be an upside move.
Halving’s Historical Impact
The Bitcoin halving is expected to occur in the next 11 days. Historically, halvings have had a significant impact on Bitcoin’s price, often leading to a surge.
Expert Opinions
Peter Brandt supports Cowen’s prediction, noting that previous Bitcoin bull markets have shown similar patterns.
Kaiko’s Analysis
Kaiko, a cryptocurrency data analytics platform, has analyzed the short-term impact of halvings on Bitcoin’s price. They found that it has been inconsistent in the past. However, data shows that Bitcoin tends to rise 9-12 months after halving, making it a generally bullish event.
Current Market Conditions
At the time of writing, Bitcoin’s price is up 8% in the past week, valued at $70,770. Its market cap is down by over 2%, while its trading volume is up by over 8% in the past day.
