Bitcoin’s Sideways Trading Pattern Could Be a Calm Before the Storm in 2024, Analyst Says
Bitcoin (BTC) has returned to its sideways trading pattern after a brief drop into the low $25,000s zone. However, one cryptocurrency market analyst believes that this current trend is just the calm before the storm in 2024.
Cryptocurrency expert seth_fin has shared his analysis of Bitcoin’s previous movements and argues that the longer the sideways trading continues, the bigger the pump after the halving event. He shared his thoughts on Twitter, stating that the longer the sideways movement, the larger the potential price increase after the halving.
Bitcoin’s Halving Events
Bitcoin has historically experienced significant bullish rallies following each of its halving events, which occur approximately every four years. During these events, the reward for mining Bitcoin is cut in half, maintaining its scarcity and counteracting inflation.
Accumulation of Bitcoin
The cryptocurrency analyst equates the current sideways trading with an accumulation of Bitcoin. He predicts that in 2025, there will be a surge in liquidity from major financial institutions such as Blackrock, Fidelity, JPMorgan Chase, and Goldman Sachs.
Additionally, the analyst highlights the decision by the Economic Affairs Committee of the European Parliament, which allows EU banks to allocate 2% of their total capital into Bitcoin. This move further indicates the mainstream acceptance of Bitcoin in the financial system.
Bitcoin Price Analysis
At the time of writing, Bitcoin is trading at $26,127, with a 1.77% increase in the day and a 1.52% gain over the previous week. However, it still shows an 11.1% loss on its monthly chart.
Crypto analyst CredibleCrypto believes that a rally might be on the horizon. He sees BTC dominance breaking its local downtrend while maintaining its higher timeframe uptrend as a bullish sign.
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