Bitcoin’s volatility has become a major source of discussion in the cryptocurrency market as the upcoming halving draws closer. This volatility has made it very difficult for analysts in the market to predict where the price will land post-halving. However, there have been some analysts who have tried to predict where the price of the flagship cryptocurrency will go.
Bitcoin halving debate causes a stir
The predictions of experts on the price trend of Bitcoin differ depending on where the analyst is looking at it. Onchain analysts are keeping the hope of a bullish outcome while predictions from technical analysts have been somewhat mixed. The head of research at CryptoQuant Julio Moreno said that it is hard to tell where the price will go after the halving. However, he was quick to point out that traders have taken profits and the sell pressure is diminishing.
According to CryptoQuant, the short-term holders have seen that the price is returning to near equivalence with the market price of the asset. This means that short-term traders have taken gains and are not looking at huge profits that will push them to hold onto the asset. Unrealized profits in the BTC network were high some weeks ago before the asset began its correction. CryptoQuant noted that two major factors that have influenced this trend are the issue in the Middle East and the slowed pace of Bitcoin ETF inflows.
Insights from analysts on Bitcoin’s price movement
Analytics firm IntoTheBlock said that even though crypto Twitter has been triggered by the assets decline, it is business as usual noting investor profitability. It noted that during the period of the uptrend, about 97% of traders were holding profits, a trend that rarely occurs and is not sustainable.
Over 97% of Bitcoin addresses reached profitability this week! This week's newsletter explores Bitcoin’s positioning in the market cycle and explores how investors have responded. Read more here👇https://t.co/cISiFWRY8r
— IntoTheBlock (@intotheblock) March 2, 2024
The firm’s marketing director Vincent Maliepaard said that the decline was not that huge as it only fell by about 20%. Meanwhile, there has been a surge in momentum, a sign that a bullish trend is around the corner.
However, JPMorgan and Goldman Sachs analysts have noted that BTC could witness a bearish return after the halving. According to JPMorgan analyst Nikolas Panigirtzoglou, the asset could suffer a price decline for so many reasons. He noted that the halving has already been priced in by the market noting that BTC’s volatility-adjusted price compared to gold is around $45,000. Goldman Sachs noted that the usual trend is for Bitcoin to hit a new high after halving. However, it believes this halving could be just hype.
