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The pre-halving correction has come into the picture as analysts around the world are forecasting bearish signals for Bitcoin.
Crypto enthusiasts are forecasting a possible Bitcoin correction before the halving event, following a decline of nearly 15%. The world’s largest crypto asset has fallen over the last six days from its latest all-time high of $73,738.
Is a Pre-Halving Correction About To Take Place?
While some analysts predict a $150,000 Bitcoin price target, others warn of a potential correction. Pseudonymous analyst, ‘Rekt Capital’ says that there are increasing signs of overheating, and the Bitcoin price could experience a significant drop before the halving in April. Moreover, the analyst notes that a pre-halving correction of 20% occurred in 2020, and a 38% retracement was observed before the 2016 halving.
#BTC
— Rekt Capital (@rektcapital) March 20, 2024
It's been 1 day since Bitcoin officially entered the "Danger Zone" (orange) where historical Pre-Halving Retraces have begun
Currently, $BTC is approximately 27 days away from the Halving and has pulled back almost -18% in total since last week
Historically, Bitcoin has… pic.twitter.com/yLc0UQ3Byi
Capriole Fund founder Charles Edwards believes that it’s “normal” to have a lot of volatility in the months around the Bitcoin halving, and investors will have the best “risk-reward” timeframe for investment in the 12 months following the event.
Furthermore, Edwards posts that there could be a shutdown of inefficient miners in the wake of the halving event. The event is expected to occur between April 18 and 20.
The Fall of Bitcoin
Bitcoin briefly fell to $61,593 on March 20 and is currently trading at $63k, per CoinGecko data. Moreover, Edwards believes that while the correction doesn’t seem to be over yet, the price action will improve long term.
The individual believes that Bitcoin will experience a historically favorable risk-reward period for the next 12 months. This prediction is based on the combination of a lower supply growth rate and the release of pent-up demand from traditional finance.
In addition to this, CryptoQuant founder and CEO Ki Young Ju claims that the Bitcoin market is being fueled by spot Bitcoin exchange-traded fund (ETF) flows and not by the halving event.
#BTC
— Rekt Capital (@rektcapital) March 19, 2024
Since the November 2022 Bear Market Bottom…
Bitcoin has experienced the following retraces:
• -23% (February 2023) lasting 21 days
• -21% (April/May 2023) lasting 63 days
• -22% (July/September 2023) lasting 63 days
• -21% (January 2023) lasting 14 days
This… pic.twitter.com/cQyQOLA5Zv
Rekt Capital, a cryptocurrency analyst, recently shared with their 430,000 followers on X that they believe Bitcoin still has some room to drop in value. They also mentioned that Bitcoin’s decline will be significant enough to make people believe that the Bull Market has come to an end. However, Rekt Capital predicts that Bitcoin will eventually recover and resume uptrend. The analyst has pointed out that BTC is already in a “danger zone,” which is historically associated with pre-halving retracements.
Looking back further, Bitcoin prices retreated 33% around the time of 2016 halving before making gains at the end of the year and surging into a bull market in 2017.
Wealth management firm Bernstein expects Bitcoin to break out to around $150,000 following the halving by mid-2025, according to a note to clients on Monday. They anticipate Bitcoin price to “break out” after the halving.
In addition, the elevated demand for spot Bitcoin ETFs has made them more confident about their price target. Bernstein suggested that investors should consider putting their money in Bitcoin miners, given that the recent underperformance of the cryptocurrency is likely the final opportunity before halving.
Summary
Bitcoin has successfully retested the old all-time high of $69,200, which is now acting as the new support line. Analysts predict a possible correction before the halving event, while others predict a $150,000 Bitcoin price target. Wealth management firm Bernstein expects Bitcoin to break out to around $150,000 following the halving by mid-2025.
Disclaimer
The views and opinions stated by the author or any people named in this article are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading in stocks, cryptos, or other related indexes comes with a risk of monetary loss.
Adarsh Singh is a true connoisseur of Defi and Blockchain technologies, who left his job at a “Big 4” multinational finance firm to pursue crypto and NFT trading full-time. He has a strong background in finance, with MBA from a prestigious B-school. He delves deep into these innovative fields, unraveling their intricacies. Uncovering hidden gems, be it coins, tokens or NFTs, is his expertise. NFTs drive deep interest for him, and his creative analysis of NFTs opens up engaging narratives. He strives to bring decentralized digital assets accessible to the masses.
