Crypto analyst and professional trader Kevin Svenson has suggested that Bitcoin (BTC) could hit an all-time high above $80,000 before the upcoming halving event.
According to Svenson, volatility is expected to increase as Bitcoin enters stage 4 of its current parabolic pattern. This pattern typically exhibits a stepped structure consisting of four levels, with prices tending to pause and fluctuate before continuing an upward trend.
In anticipation of this, many investors are expected to jump into the market.
But Svenson also warned of potential near-term risks after the halving. He highlights the likelihood of a significant sell-off following the April halving, which could lead to Bitcoin briefly falling below previous highs before setting a new accumulation zone.
BTC reached $83,000?
Utilizing Fibonacci retracement and extension tools for technical analysis, Svenson suggests a potential price target for Bitcoin of $83,000.
He also expects it to bounce back to around $48,000-$49,000 before resuming its upward trajectory.
However, Svensson warned that Bitcoin could face downward pressure after the scheduled halving in April. “If the halving occurs, we could witness a significant ‘sell the news’ event, potentially sending prices below all-time highs,” the analyst explained.
Svenson also highlighted the possibility of a market reversal and the emergence of an accumulation area below the peak before another bullish surge.
The analyst highlighted the optimistic sentiment leading up to the halving, suggesting that many investors may look to buy Bitcoin ahead of the event, sending the price to a new record.
But they warned that the surge in purchasing activity could temporarily limit growth.
Bitcoin price trajectory after Bitcoin halving
The Bitcoin halving event, a critical moment for the cryptocurrency market, is likely to have an impact on altcoins as well.
As the halving reduces the rewards miners receive for validating transactions on the Bitcoin network, its impact will impact the entire cryptocurrency market, affecting both Bitcoin and altcoin prices.
In November 2023, “the wolf of every street” Scott Melker echoed Standard Chartered Bank’s prediction that Bitcoin (BTC) would reach $100,000 by the end of 2024. This prediction was driven by the approval of a US-based spot Bitcoin ETF and the upcoming halving. event.
Standard Chartered Bank maintained its April forecast, asserting that Bitcoin (BTC) will actually surpass $100,000 by the end of 2024.
A pivotal factor driving this forecast is the approval of several US-based spot Bitcoin ETFs in the first quarter of 2024. This ETF, which potentially encompasses both BTC and ETH, is expected to attract significant institutional investment.
The bank also said Bitcoin’s market dominance has expanded, now accounting for 50% of total digital asset market capitalization, up from 45% in April.
Analysts on platforms such as DecenTrader, BitQuant, and Bloomberg have given optimistic price predictions for Bitcoin after the halving. Predictions range from surpassing previous highs to hitting ambitious goals like $250,000 and even $500,000.
These forecasts highlight the potential for significant price appreciation in the foreseeable future based on historical price patterns, market dynamics, and the historical impact of halving events on Bitcoin valuation.