The block subsidy halving is expected to occur on April 20 and will boost the price of Bitcoin (BTC) as it has in the past. However, BTC could still crash from current prices before reaching enough strength for the expected post-halving rise.
Notably, CrypNuevo is witnessing a short-term uptrend to $47,000, followed by a crash to the $36,000 zone. The veteran trader published this analysis on January 26th
Essentially, CrypNuevo explained how Bitcoin could consolidate in the $40,000-$45,000 range in February. During this time, the market may diverge up to the aforementioned $47,000.
After that, taking into account previous liquidity pools and price movements, there is a potential support zone of $36,000 to $36,700.
BTC/USD daily price chart. Source: @CrypNuevo on X
BTC Halving and Historical Price Movement
Historically, Bitcoin consolidated or fell in the months leading up to each previous halving. This historical pattern confirms CrypNuevo’s liquidity analysis and confirms this year’s BTC forecast of $36,000 in March.
BTCUSD weekly chart. Source: TradingView
A decline to the target would represent a loss of almost 14% from the current BTC price of $41,810. Remarkably, this percentage is also consistent with previous years. In 2020, Bitcoin lost over 40% from local high to local low during the global COVID-19 crisis.
However, historical price developments are no guarantee of future events. Similar to technical analysis, which is based on odds and probabilities but can fail. The cryptocurrency market is very volatile and unpredictable, meaning anything can change under the right conditions.
Cryptocurrency traders and investors must do their due diligence and understand the asset in which they are investing. Macroeconomics, fundamentals, supply and demand, and whale movements could easily influence the price of Bitcoin. Therefore, caution is advised when speculating.
Disclaimer: The content of this website should not be considered investment advice. Investing is speculative. When you invest, your capital is at risk.
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