Bitcoin trading near $62,000: What's the next move?
Bitcoin trading near $62,000: What's the next move?
The largest cryptocurrency by market cap has fallen below $61,000, but most analysts believe that Bitcoin (BTC) will continue to rise.
According to CoinDecko, the price of Bitcoin briefly hit $60,913 on Wednesday and is trading at $61,633 at the time of writing.
On March 14th, the price of BTC hit a record high of $73,738 before dropping more than 15% 6 days later. However, analysts remain optimistic about Bitcoin's continued bullish trend, predicting a significant rise in price after the halving, Cointelegraph reported.
Charles Edwards, founder of hedge fund Capriole Investments, wrote on his X (Twitter) page that a 30% drop in the price of BTC is normal during a bull market.
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In addition, Edwards stressed that Bitcoin will show high volatility for one month on either side of the halving. After the halving, there will be a reduction in supply, which, combined with pent-up demand, will contribute to Bitcoin's uptrend.
"12 months is historically the best risk/reward period for Bitcoin," Edwards said.
At the same time, Ki Young Ju, founder and CEO of CryptoQuant, believes that the BTC market will be supported by spot ETFs rather than the upcoming halving. Ju explained that miners may be happy with a price of $63,000, as the real cost of mining one coin is around $37,000.
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A crypto analyst nicknamed Rekt Capital pointed out that historically, Bitcoin has always shown pullbacks 14-28 days before the halving, and he believes that this year, the price of BTC could drop 20% before the halving.
Rekt Capital is also confident that after the halving, there will be a period of parabolic growth for Bitcoin that will last one year.
It is worth noting that the movement of the Bitcoin price before the upcoming halving, expected in mid-April 2024, is identical to the price movements in 2016 and 2020.
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