As the world of cryptocurrency stands on the precipice of its next notable occurrence, the halving of Bitcoin, investors are poised for a potential magnification in market growth. Yet, leading authority and trader in cryptocurrency, Benjamin Cowen, has signaled a word of circumspect, indicating that should the price of BTC mirror past patterns, a correction may be afoot.
The focus is on a trend that Cowen has spotlighted, which suggests that the upcoming Bitcoin halving event could instigate a substantial drop in the digital asset’s price. This looming event, coupled with the prospect of BTC’s potential downfall, suggests a somewhat tempestuous time ahead in the world of cryptocurrency.
Delving deeper into the potential for a repeat performance of past patterns, Cowen outlined the possibility of BTC following a path similar to its entrance into the spot ETF during a previous halving. Such a path could be lined with a tendency towards a downward trend. While he acknowledges that historical patterns do not often recreate identically, Cowen believes it’s imperative that this possibility be squarely on the radar, in the event that history attempts to repeat itself.
In the midst of this forecasting, a pseudonymous user chimed in on Cowen’s discourse, pointing out a forgotten element in Cowen’s speculative analysis – the arrow backup. Undeterred, Cowen relayed his belief that the next phase’s trajectory would hinge on the state of ALT/BTC pairs. If they remain unbroken, an upswing could be in the cards, conversely, should they be cast down, a new pattern may follow.
This Bitcoin halving event, forecasted to occur within the next 11 days, is an occasion that historically has had a decisive impact on BTC’s price. This potentially leaves Bitcoin on the cusp of a significant price surge. However, should Cowen’s recent prediction come to fruition, the aftermath of halving may present a contrasting landscape for the cryptocurrency.
Cowen’s prediction has sparked a flurry within the cryptocurrency community, with fellow analysts, including Peter Brandt, backing his insights. Brandt echoed Cowen’s forecast, recognizing parallels with previous Bitcoin bull markets displaying similar underlying trends.
With the halving event on the near horizon, the cryptocurrency data platform Kaiko has presented an interesting angle to consider. Kaiko has delved into the highs and lows Bitcoin’s price has experienced in the short term following previous halvings. Their findings revealed an inconsistency, but a trend towards price escalation 9-12 months post halving is predominantly apparent.
At the time of writing, Bitcoin had seen an 8% rise in value over the previous week, driving its worth up to $70,770. Despite a reduction in market cap by over 2%, its trading volume witnessed an 8% uptick in the past 24 hours, making for an interesting, albeit contradictory, state of play as the halving approaches.
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