Volatility ensued after Bitcoin (BTC) hit an all-time high, and the market is awaiting the next price move at a time when several catalysts, including the upcoming halving, are supporting the premier cryptocurrency.
When assessing Bitcoin's next price target, crypto trading expert Trading Shot laid out potential price targets based on the asset's historical patterns observed since late November 2022 in a March 7 TradingView post.
According to the expert, Bitcoin has exhibited a consistent pattern since the bottom, characterized by a significant increase of around 100%, followed by a triangle formation that heralds the peak of the rally. There is then a significant 20% decline, typically in the form of a channel downtrend.
Based on this pattern, the analyst predicted another 96.43% increase, similar to previous waves. At the same time, he suggested a correction of around 20%, which was expected to land at around $60,000.
Bitcoin price analysis chart. Source: TradingView
“The recent high volatility over the last three days is similar to the triangle patterns before the peak. A +96.43% increase, similar to the previous wave, will complete at around $75,500. If BTC continues to replicate these patterns, a -20% correction should coincide with the April halving,” he said.
What’s next for Bitcoin after ATH?
It is worth noting that Bitcoin's recent journey to a new all-time high was triggered by several key milestones that impact the broader cryptocurrency landscape. In particular, a number of spot Bitcoin exchange-traded funds (ETFs) that began trading in January are key catalysts for the current Bitcoin rally. At the same time, the upcoming halving event has raised expectations.
Bitcoin halvings, which occur every four years, reduce mining rewards by half and slow the creation of new Bitcoins. They have historically influenced Bitcoin prices, which analysts attribute to scarcity and fueling previous price rises.
Overall, the timing of the record high is significant considering that the asset typically hits a new high after the halving. This could indicate that the market is going through an earlier, sharper and shorter bull cycle that could follow a correction.
However, the market expressed concerns about Bitcoin correcting by almost 10% after hitting an all-time high. Notably, crypto on-chain data analytics platform Santiment pointed out on March 5 that buy-in-the-dip calls were at their highest level in a few months following the decline.
BTC buying in dip interest. Source: Santiment
Bitcoin price analysis
At press time, Bitcoin was valued at $66,804, with a daily increase of 1.3%. In the last seven days, BTC is up about 6%.
BTC 7-day price chart. Source: Finbold
Overall, Bitcoin's future trajectory remains uncertain as the asset is vulnerable to factors such as increased profit-taking, which could lead to losses.
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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