Bitcoin Price Uncertain: Will Pre-halving Momentum Outweigh Potential Dip?

Bitcoin may attain a new all-time-high in 2024.

The Bitcoin halving event may trigger a strong BTC price rise.

Some crypto analysts believe that the price of bitcoin may reach $100,000 in 2024.

Keywords: Bitcoin price, price of bitcoin, hold bitcoin, bitcoin holders, buy Bitcoin, buy BTC, bitcoin market, bitcoin halving event, bitcoin price bounce, bitcoin price drop

Introduction

After the price of bitcoin dipped following the SEC’s approval of spot bitcoin ETFs it is now showing signs of recovery amid great resistance. However, there is no certainty in the BTC market in both the short-term and long-term periods. Today, we analyze the hurdles bitcoin is facing as we head towards the 2024 halving event.

Bitcoin’s Price Recovery: Overcoming Resistance after a Bearish Signal

Bitcoin is facing much resistance in its thrust to recover from its recent dip. For example, on 2 February while most cryptocurrencies were in red the bitcoin price edged closer to $44,000, Nevertheless, the bears strongly rejected its upward move, pushing it downwards to $42,000.

The struggle between the bitcoin bears and bulls increased during the period the US Federal Reserve indicated that it was going to stick to its current monetary policy. This means that the interest rate remains at its multi-decade high of around 5%.

Also, the tussle for market control between the bitcoin bulls and bears continued a week after bitcoin dropped to $38,500 when the hype around spot bitcoin ETFs had faded away. Nonetheless, for the greater part of the period, between 11 January and 2 February, the bulls remained in control as they initiated several price increases. During that period the bitcoin price fluctuated within a very tight range as the following graph shows.

Bitcoin Price Movement – CoinMarketCap

The diagram above, however, indicates that the bitcoin bulls increased their buying behaviour from 7 February when the price of bitcoin surpassed $43,000 again. As many bitcoin holders continued to buy BTC its price gradually rose until it reached $47,240 on the 10th of this month.

Analysts Offer Diverse Predictions for Bitcoin

Although the price of bitcoin dipped during January, it rebounded in the first week of February as its value surpassed $43,000. During that period the weekly chart showed bitcoin trading slightly above the 0.5 Fibonacci (Fib) retracement resistance level.

Later on, it faced strong resistance at $45,000, $45,100 and 0.618 Fib retracement resistance levels. Nonetheless, a rejection at the 0.5 Fib retracement resistance level would trigger a 5% drop that could take its price to $41,000.

On the other hand, the weekly Relative Strength Index (RSI) showed a bearish reading. An RSI reading below 50 is bearish while that above 50 is bullish. Based on bitcoin’s technical outlook some traders on X have mixed views on bitcoin’s short term and long term directions.

Commenting on X, Michaël van de Poppe, a crypto trader showed Optimism that the price of bitcoin will exceed $50,000 during the first quarter of the year. He believes that the approaching bitcoin halving event will influence the price of bitcoin to rise.

Related news: After BTC ETFs approved, what’s the next narrative?

Source: x.com

Posting on X, Michaël van de Poppe said, “My general theory is that Bitcoin is consolidating in the coming months. Pre-Halving a final run towards resistance at $48-50K, after that another correction to $36-38K and from there altcoins continue outperforming Bitcoin.”

Fred Krueger, another X user, believes that bitcoin may attain the next all-time high before the 2024 halving event. He said, “Over the next 30 to 60 days, there are 20 to 40 trading sessions. I would bet this results in between 4 and 6 Billion new USD in inflows. At a market cap of 850 Billion, it’s pretty easy to see this could move the market 50% or to 64K. Basically at an all-time high.”

He continued, “The scenario of getting there BEFORE THE HALVING could really accelerate the mainstream Wall Street narrative, completely destroying the “Turtle” model.”

Although another X user, Bluntz, believes that the bitcoin price will eventually rise, he thinks it will first take a strong dip. He used the following graph to illustrate his point.

Source: x.com

He then commented, “Expecting BTC to chop as many ‘people’ as possible this week in true crypto fashion by taking the highs and lows before making its move.”

In the meantime, a popular X user and crypto analyst has encouraged investors to buy bitcoin as he anticipates its price to rise significantly soon. At the same time, bitcoin holders should postpone selling their BTC until the halving event is over. Generally, the analyst believes that bitcoin is in a consolidation phase and it will attain a value of $57,000 before mid-April.

Source: x.com

Findings of Bitget Bitcoin Survey

Bitget, a crypto exchange and Web3 Company, has released its findings on the possible bitcoin price movements before and after the bitcoin halving event.

The survey, conducted across different geographical regions like West Europe, East Europe, South East Asia, East Asia, MENA, and Latin America and involved 9,748 individuals, concluded that the BTC halving event will have a great impact on the bitcoin market.

84% of the survey participants indicated that the bitcoin halving event will help to push the bitcoin price above $69,000. Also, individuals from various regions have shown optimism in the future of bitcoin. According to the survey findings investors may make profit if they buy BTC now.

Conclusion

The 2024 bitcoin halving should enable bitcoin to recover and probably kickstart the next Bull Run. Already, some analysts think that the price of bitcoin may reach $100,000 by the end of the year. The current bitcoin market sentiment is bullish which may entice optimists to buy and hold bitcoin.

Author: Mashell C., Gate.io Researcher

*This article represents only the views of the researcher and does not constitute any investment suggestions.

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