Bitcoin Is Likely Preparing for One Final Plunge Below the $20,000 Price Level Before the Halving Event Tailwind Takes Hold
The anticipation for Bitcoin’s next halving event is growing as the cryptocurrency community eagerly awaits a potential bullish wave that could end the current bear market. However, before the expected relief can materialize, it seems that the bears are set to have one final laugh at the expense of the bulls.
According to cryptocurrency analyst Rekt Capital, Bitcoin typically goes through a relief run followed by a significant price plunge in the lead-up to its halving event. This plunge establishes the cycle’s “macro higher low.” In 2019, for example, Bitcoin experienced a relief rally followed by a 62% price drop around the same temporal distance from that cycle’s halving event.
Currently, Bitcoin appears to be in its relief run phase. If historical trends hold true, the cryptocurrency is due for another substantial price plunge before the bulls can take control. Rekt Capital suggests that a 27% drop from the current price level of approximately $26,000 to around $19,000 would satisfy the conditions for this capitulation.
It is worth noting that Bitcoin’s fair value, which takes into account the energy deployed on the network, is currently around $46,000. Additionally, with a recent court order instructing the SEC to re-examine Grayscale’s application for a spot Bitcoin ETF, the launch of multiple spot Bitcoin ETFs seems likely. This influx of capital could lead to a significant price increase.
On the other hand, the increasing regulatory pressure on Binance is dampening overall sentiment in the crypto sector. As the regulatory noose tightens around one of the largest cryptocurrency exchanges, it creates uncertainty and affects market sentiment.
The question remains whether Bitcoin will be able to reach a new all-time high. The cryptocurrency market is known for its volatility and unpredictability, making it challenging to make definitive predictions. However, with the upcoming halving event and potential regulatory developments, the future of Bitcoin remains an intriguing topic of discussion.
What are your thoughts? Do you believe Bitcoin will reach a new all-time high? Share your opinions in the comments section below.
