- BTC was down by 5% in the last 24 hours.
- The king coin might reach a new ATH by the end of 2024.
Bitcoin [BTC] has been witnessing multiple price corrections, which pushed the coin’s price under $65k. However, investors must not lose hope, as BTC seemed to be following a historical price trend in the buildup to the halving.
So, if history repeats itself, BTC might witness a further price drop before it gains momentum and reaches $100k.
Bitcoin goes under $65k
After touching an all-time high, BTC’s price was quick to plummet. According to CoinMarketCap, BTC was down by over 10% in the last seven days.
In fact, in the last 24 hours alone, the king of cryptos’ price dropped by over 5%. At the time of writing, BTC was trading at $64,509.53 with a market capitalization of over $1.27 trillion.
Due to the price drop, Bitcoin’s Social Volume declined, suggesting that its popularity somewhat fell. Its Weighted Sentiment also dropped, meaning that bearish sentiment around the coin was dominant.
Source: Santiment
However, this declining trend was not unforeseen, as Rekt Capital posted an analysis regarding BTC following a historical trend ahead of its upcoming halving.
As per the analysis, Bitcoin first entered the pre-halving rally phase. During that phase, BTC managed to reach an all-time high a few days ago.
The Pre-Halving Rally breakout was a little ahead of schedule by a handful of days. However, Bitcoin was slowly transitioning away from its “Pre-Halving Rally” phase and into its “Pre-Halving Retrace” phase.
Source: X
Will Bitcoin’s value plummet further?
Since Bitcoin entered the pre-halving retracing phase, the chances of the coin registering a further price drop seemed likely. Rekt Capital’s tweet mentioned that the pre-halving retrace tends to occur 28 to 14 days before the halving event. The phase resulted in 20% and 38% price drops in 2020 and 206, respectively.
This time around, BTC might as well touch $60k.
To check whether that’s possible, AMBCrypto took a look at CryptoQuant’s data. Our analysis revealed that BTC’s net deposit on exchanges was high compared to the last seven-day average, indicating high selling pressure.
Two more bearish indicators were its SOPR and Binary CDD, as both of them were red, hinting at high selling pressure.
Source: CryptoQuant
To check how much the coin might fall, AMBCrypto then took a look at its liquidation heatmap. As per our analysis, BTC has strong support near the $64,000 mark.
Therefore, BTC’s price might rebound after touching that level. However, if it fails to test the support and falls under it, then the chances of BTC hitting $60k are high.
Source: Hyblock Capital
To better understand the chances of a continued price drop, AMBCrypto checked Bitcoion’s daily chart. The king of cryptos’ Relative Strength Index (RSI) registered a sharp downtick.
Its MACD also displayed a bearish advantage, suggesting that the coin’s price might decline further in the coming days.
Nonetheless, the Money Flow Index (MFI) registered an uptick. As per the Bollinger Bands, BTC’s price was in a less volatile zone, which might prevent the coin’s value from dropping further.
Source: TradingView
Bitcoin might touch $100k after halving
Though BTC’s price might witness yet another price correction, things in the long term looked bullish. Notably, after the pre-halving retrace phase, BTC will enter the re-accumulation and parabolic uptrend phases.
The accumulation phase might as well last for nearly five months. Interestingly, in this cycle, it would be the very first time that this re-accumulation range could develop around the New All-Time High area.
The analysis mentioned,
“As a result, this re-accumulation range may simply take the shape of a regular sideways range and may not last very long before additional uptrend continuation.”
After that, BTC would enter the parabolic uptrend zone, which might allow BTC to create a new ATH. Historically, this phase has lasted just over a year.
Read Bitcoin’s [BTC] Price Prediction 2024-25
However, with a potential accelerated cycle occurring right now, this figure may get cut in half in this market cycle.
Therefore, investors might see BTC touch $100k during that phase, which might happen at the end of this year.