- After key events, Bitcoin shows tendency to corrections; recent rise could anticipate adjustment according to historical pattern.
- Analysts predict a possible fall of Bitcoin to $33,000 if it breaks the $38,000 support, looking ahead with caution.
Bitcoin’s (BTC) recent moves has captured the attention of investors and analysts. Charlie Bilello, Chief Market Strategist at Creative Planning Investor, has commented on a historical trend of corrections in the Bitcoin price following events that have occurred this month. This pattern suggests that we could be on the verge of an additional correction after the recent upside, especially in light of the approval of spot BTC ETFs.
Since the beginning of the year, Bitcoin has had a 5.31% decline, although it has shown a slight 0.4% rally in the last 24 hours. However, the cryptocurrency’s market capitalization and trading volume have experienced attention-grabbing fluctuations, because of similar behavior to previous Bitcoin moves. Despite these variations, history indicates that these moves could be precursors to a deeper correction.
Bilello has remarked important events in Bitcoin’s history that have been followed by steep corrections. One of these was the December 2017 bull run, which positioned Bitcoin above $17,500 and was followed by an 84% correction.
A similar pattern was observed in October 2021, when Bitcoin reached its all-time high of $68,789.63 prior to the approval of Bitcoin Futures ETFs, then experiencing a 78% correction.
Analyzing the above patterns, one would anticipate that after this latest event in January 2024, the market could be about to experience another correction. Historically, after every significant upside tied to a major event in the Bitcoin ecosystem, a correction has occurred. If the pattern holds, investors could expect a decline in price in the months following January 2024.
This year, the trend seems to be repeating itself with the rise in Bitcoin price ahead of the expected approval of spot Bitcoin ETF products by the SEC. So far, the cryptocurrency has posted a 20% drop, which could be just the beginning if the historical pattern continues.
Analysts such as Ali Martinez have projected possible bottoms for this current correction, indicating that Bitcoin could drop as low as $33,000 if it breaks the $38,000 support zone. While opinions vary, there is a consensus that in the long term, events such as Bitcoin spot ETF product approval and the upcoming halving could have a positive impact on the price of BTC.
Investors are vigilant, looking for signals in the market that confirm or challenge these predictions. Uncertainty about Bitcoin’s price floor and the expectation of future moves keep the crypto community on edge, waiting to see if history really does rhyme or if this time, the pattern will take a different course.
