The Bitcoin price dipped 1.5% to $58000 during the Sunday trading session. For the past few days, the consolidation of the BTC price below $60000 has accelerated uncertainty in the crypto market. However, despite the fear of recession mounting and substantial outflow from BTC ETFs, the sellers struggle to drive the price lower, indicating buyers’ active accumulation. Is an upward surge imminent?
Bitcoin Price Set for 12% Dip Before a Major Breakout
Since the fourth Bitcoin Halving on April 19th, the BTC price has largely moved sideways, facing difficulties in consistently maintaining a level above $72,000. Now, 135 days post-halving, investors appear to have dwindling enthusiasm for the anticipated post-event rally.
However, a comparative analysis of the Bitcoin price trends following the halvings in 2012, 2016, and 2020 suggests a potential rally could occur within 400 days after the halving.
According to the chart shared by an X (formerly known as Twitter) user, @degengambleh, this recurring pattern indicates that significant price surges have consistently followed Bitcoin halvings, suggesting a similar outcome may be on the horizon for 2024.
Idk about you, but I’m not fucking leaving
— Zer0 🕊️ (@degengambleh) August 31, 2024
By the press time, Bitcoin price trades at $58165 while boosting a market cap of $1.148 Trillion. With the current negative trend, the asset could plunge 12% to retest the combined support of $50000 and Flag pattern support.
This chart setup consists of two downsloping trendlines driving a temporary counter-trend move for buyers to recuperate the bullish momentum. Thus, the potential dip could renew the bullish momentum for Bitcoin price prediction and bolster an espace from the current consolidation with a flag breakout.
The post-breakout rally could drive the BTC price to $83450.
Additionally, data from Santiment analytics highlights a notable accumulation trend among Bitcoin whales. Addresses holding between 100,000 and 1,000,000 BTC have been actively increasing their holdings since late July.
The yellow line in the chart tracks this metric, which now stands at approximately 702,790 BTC, indicating that major investors are confident in potential future price gains for this asset.
However, the daily EMAs (20, 50, 100, and 200) nearing a bearish crossover indicate the current consolidation could extend a bit further.
Frequently Asked Questions (FAQs)
Historically, Bitcoin has shown significant price rallies within 400-500 days following each halving event, often leading to new all-time highs
The potential 12% dip could see Bitcoin retest the major support level around $50,000, which aligns with the bull flag pattern
Data from Santiment analytics shows that Bitcoin whales, specifically addresses holding between 100,000 and 1,000,000 BTC, have been increasing their holdings since late July.
Sahil Mahadik
Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Armed with a strong grasp of technical analysis, he keeps a vigilant eye on the daily price movements of top assets and indices. Drawn by his fascination with financial instruments, Sahil enthusiastically embraced the emerging realm of cryptocurrency, where he continues to explore opportunities driven by his passion for trading
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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