Analyst Cheeky Crypto has raised a compelling question: Could Bitcoin be on the verge of repeating its history? Diving the charts, Cheeky Crypto explores past trends and potential future scenarios in a recent analysis.
Bitcoin’s historical patterns often coincide with its halving events, which occur approximately every four years due to block propagation rather than specific time intervals. These halving events have historically triggered significant market movements.
Examining the charts, Cheeky Crypto notes distinct bear markets leading up to each halving event. However, bullish indicators emerge following these periods of decline, such as the 50-day moving average crossing above the 100-day moving average. This signals potential upward momentum leading into the halving event.
Looking back at previous halving events in 2012, 2016, and 2020, Cheeky Crypto observes varying price actions, from sideways movement to notable increases post-halving. Despite temporary downturns immediately following halvings, Bitcoin has historically experienced substantial growth in the following weeks and months.
Anticipation surrounds the upcoming fourth halving event scheduled for April 2024. While volatility is expected around this event, historical events suggest the potential for significant price appreciation afterward.
Cheeky Crypto outlines potential price targets, estimating Bitcoin’s value to range between $98,000 and $173,000 after the halving. However, uncertainties remain, with the possibility of unforeseen events like pandemics or black swan events disrupting market dynamics.
At the time of writing, Bitcoin is up by more than two percent and is trading above the $48k level. Sitting at about $48,129, the coin is still far short of its 2021 peak of almost $69,000. Bitcoin aims for a big rally to reach a record high of $50,000. Investors are excited about a new exchange-traded fund (ETF) and the upcoming halving, which could boost Bitcoin’s price even more.