It’s not uncommon for Bitcoin to experience a significant adjustment or dip at the start of the year following a halving event, as some analysts have observed by comparing past trends.
In simpler terms, Axel Bitblaze, a well-known crypto analyst, shared with his 123,000 followers on January 12 that a drop in Bitcoin’s value, often seen following halvings, has been a recurring trend in years after the event. He referenced past instances such as the drops that followed the halving periods in 2017 and 2021.
Bitcoin (BTC) experienced a decline of approximately 10% this month, dropping from its peak of nearly $102,300 on January 7th to slightly under $92,000. It then briefly rebounded, moving closer to $94,000 at the moment.
In January 2021, Bitcoin dropped more than 25% from over $40,000 down to around $30,000 by the month’s end. However, it experienced a remarkable surge of approximately 130%, reaching a record-breaking high of $69,000 in November of that year.
2017 saw Bitcoin experience a significant drop, approximately 30%, following the halving event in 2016. Its value plummeted from around $1,130 to $784 in January. However, this decline was short-lived as it soared an astounding 2,400% that same year, reaching a record high of $20,000 by December.
Over the past year, ‘Crypto Rover’, a well-known YouTuber and analyst, noticed that Bitcoin tends to decrease during the initial half of each month.
“This is just a small dip compared to what we’ve seen before,” he said.
According to Stockmoney Lizards’ X account, posted on January 12, Bitcoin hasn’t yet reached its peak hype or pump phase. There’s still more growth expected in the following 12 months.
The analyst admitted that each cycle had its unique aspects, yet emphasized that with widespread acceptance of cryptocurrencies, supportive governments globally, Exchange Traded Funds (ETFs), among other factors, it seems to reinforce our proposed theory.
If the Bitcoin price surge resembles its highest point during the last market cycle, it might boost prices beyond the current level and reach around $200,000 by the year 2025.
Conversely, if we see a decrease similar to the one observed in January during the past two cycles, it might push prices down below $70,000.
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2025-01-13 09:15