The world’s most valuable cryptocurrency is holding its strong footing in the market. As the traditional banking system continues to struggle, the crypto world is gaining strength, and Bitcoin remains at the forefront of the revolution. Despite failing to meet some expectations, some scenarios could change things for Bitcoin sooner rather than later.
Bitcoin’s Winter
The crypto winter of 2022 significantly impacted Bitcoin’s value, causing it to lose much of its market value. As a result, Bitcoin’s price declined from an all-time high of over $67,000 in early 2022 to a low of $15,000. At the time of writing, Bitcoin’s price had recovered to $27,000, which is still high since the start of the winter.
The decline in Bitcoin’s value during the crypto winter was attributed to several factors, including internal cryptocurrency company failures and macroeconomic events. However, Rekt Capital analysts suggest that this decline is part of a pattern observed since Bitcoin’s halving in 2016.
According to analysts, Bitcoin has been consolidating its lows per each macro downtrend since the 2016 halving. The same trend occurred in 2015 and 2019, exactly a year before each halving event. If this pattern plays out again, the third time could be the charm, with the next halving event falling in April 2024.
This pattern is based on the idea that after each halving event, the supply of Bitcoin is reduced, which, in turn, leads to an increase in demand and, ultimately, a rise in Bitcoin’s value. The analysts suggest that this price consolidation pattern, followed by a significant increase in value, could repeat itself in 2023 and 2024.
Technical View
If the monthly candlestick close of Bitcoin is above the downward momentum line, the bigger downtrend could vanish completely, which would be a positive sign for Bitcoin. However, if the token breaks below this barrier, it could signal support in the long run.
Before the previous halving event, Bitcoin saw a massive 183% increase in price, but it is unlikely to see such a significant increase this time. However, the cryptocurrency is not expected to dip below the $25,000 mark.
On the daily Relative Strength Index (RSI), Bitcoin has consolidated from oversold to overbought, which could pave the way for a pullback of the currency. This pullback could create an awkward shift back to June 2022 lows.
According to CryptoQuant, a crypto research firm, Bitcoin’s resurgence in March caused BTC miners to start selling their holdings, which is a trend that is likely to continue for a while. This selling pressure from miners could contribute to short-term volatility in the price of Bitcoin.
BTC Season
The current surge in Bitcoin’s price has led analysts to dub it “Bitcoin season,” The token saw a 35% increase in the last week alone, ending trading at $27,700 from below the $19,000 mark. However, the market sentiment for other altcoins remains divergent from BTC, with most altcoins seeing significantly lesser upticks and some even dropping in value.
Robert Kiyosaki, the author of the famous book “Rich Dad Poor Dad,” has advised market participants to move into or hold assets like precious metals. Still, he also made the surprising claim that BTC would be a good investment, with the main cryptocurrency looking like a haven for investors. His comments came after FTX investors recently ganged against YouTube influencers to create a class-action lawsuit.