On Monday, Bitcoin (BTC) began strong with a bullish attitude after breaking free from a small pennant pattern. However, it’s currently experiencing a pullback to recheck the downward logarithmic trendline. Bitcoin is building up energy to surpass the significant resistance of approximately $74,000.
In addition, the anticipated fourth Bitcoin halving is set to occur in approximately 11 days, resulting in a decrease in its annual inflation rate from roughly 1.68% to around 0.84%.
Bitcoin Market Overview
During the first quarter, Bitcoin’s price set the pace for significant increases among altcoins in the crypto market. This surge came after the approval of spot Bitcoin ETFs in the US. Furthermore, the amount of Bitcoin held on centralized cryptocurrency exchanges has decreased significantly, reaching a record low earlier this year. According to Glassnode’s analysis of blockchain data, over 111,000 Bitcoins, equivalent to around $7.5 billion, have been taken out of major crypto exchanges in the past month.
In the upcoming quarters, Bitcoin and the broader altcoin market are expected to see significant growth according to most experts, driven by the continuous imbalance between supply and demand. Additionally, gold prices and major stock indexes have been climbing, suggesting that the bulls are currently in charge of the market trend.
Gold market is definitely discounting lower interest rates ahead $GC_F
— Peter Brandt (@PeterLBrandt) April 8, 2024
In the current economic cycle, the expected interest rate reductions by the US Federal Reserve later this year are considered highly optimistic signals. According to experienced trader Peter Brandt, gold has historically performed well following each instance of Fed’s completion of rate hikes.
Peter Brandt’s Prediction on BTC Price Action
Bitcoin’s price behavior during its four-year cycles may reach a historic milestone for the first time: surpassing the previous cycle’s all-time high at the upcoming halving event, as per Brandt’s analysis using the HSBLD indicator. (HSBLD being the Bullish Hump Slump Bump Lump Dump pattern)
Following this trend, the well-known Bitcoin trader anticipates further price increases for Bitcoin, potentially reaching a new all-time high, prior to a potential pullback after the halving. Additionally, it’s likely that the upcoming Bitcoin halving could result in brief selling pressure before prices rebound again.
This same basic pattern has been common in past bull markets in Bitcoin
— Peter Brandt (@PeterLBrandt) April 9, 2024
On the Flipside
The Bitcoin market has recently lost ground to the alternative cryptocurrencies, or altcoins, as Bitcoin’s dominance in the market has dropped below 54% over the past few months. According to analyst Brandt, Ethereum is expected to see significant growth based on the ETH/BTC pair reaching a long-term low and a bullish signal appearing on the weekly Relative Strength Index (RSI).
Currently, Hayes expressed in his recent blog entry that he thinks the Fed’s actions and the approaching Bitcoin halving might trigger a significant sell-off in cryptocurrencies.
“The belief that Bitcoin and cryptocurrency prices rise after the halving event is widely accepted. But when the majority holds this view, it often leads to the opposite result. Therefore, I predict a price drop for Bitcoin and crypto around the time of the halving,” Hayes explained.
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2024-04-09 12:13