Will Bitcoin Price Reach New High in 2024, Should You Buy BTC Now and Is Another Crash Coming: Analysis

The trading price of Bitcoin is currently around $43,000 and has been in a range between $40,000 and $48,000 since the beginning of December. This comes less than a month after a landmark decision by the U.S. Securities and Exchange Commission to approve a spot Bitcoin exchange-traded fund (ETF).

Source: CoinGecko

In a comprehensive analysis of the current Bitcoin price, DecenTrader provides an opinion and outlook on what is currently going on with BTC and where it might be heading in the not too distant future.

Sell ​​the News: The Bitcoin ETF Approval

According to the analysis, the ETF's approval on January 11 was one of the reasons Bitcoin reached almost $49,000 in early January.

This fact provided three precise reasons for the sale, according to DecenTrader. These include hitting a technical target from a bottom of the cup and handle pattern, the 61.8% bear retracement, and the news being mostly sell-the-news. event.

Bitcoin price continued to fall, largely due to outflows from Grayscale's Bitcoin Trust – GBTC. Remember that investors in GBTC did not have the opportunity to release their funds before the ETF was approved. When this became a reality, they started selling, which put downward pressure on the price.

The Bitcoin Halving: An Important Consideration

Now that the Bitcoin price appears to have stabilized, it is also important to acknowledge another major catalyst in 2024: the BTC halving.

DecenTrader analyzes the potential impact on price and says: If we want to assume buying interest at some point before the event, the following applies:

This would mean that Bitcoin has about 30 days (February 2) to go through its correction phase before reaching the expected FOMO demand.

Furthermore, analysts also say that the downside risk is somewhat limited precisely because of the halving.

Will Bitcoin reach an all-time high in 2024?

Analysts believe that this cycle will be no different from previous ones and that cryptocurrencies take 220 to 240 days to reach a new all-time high after halving in the past.

I expect a similar outlook with Bitcoin hitting new all-time highs in the mid-to-late fourth quarter of 2024, giving some time for a correction to test investors' resolve in between.

However, the report also warns of upcoming choppy price action and “additional FOMO towards the $49,000 level.” Another Sell the News event awaits you here.

Disclaimer: None of the above constitutes financial advice. Investing in cryptocurrencies involves the risk of loss of capital. Readers are strongly advised to consult a financial professional before making any decision that may or may not be related to the above content.

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