In a post shared on X on January 26, crypto analyst BitQuant wrote Forecasts that Bitcoin (BTC) will recover from the current downtrend and rise above its all-time high of $69,000 to over $250,000 ahead of the upcoming Bitcoin halving in April.
BTC to $250,000 before halving | Source: BitQuant on X
Bitcoin rise to $250,000 before halving?
From the chart shared by BitQuant, Bitcoin is still moving within an upward channel. Due to the multi-year uptrend the coin is in, the next “touch” of this channel is expected to be around $250,000.
For now, if the trendline is any guide, Bitcoin has immediate resistance at around $80,000. This level should be the next key target for the bulls to retest. According to BitQuant, Bitcoin is likely to hover above this limit at $250,000 by April before the network automatically halves block mining rewards.
Bitcoin price trending higher on daily chart | Source: BTCUSDT on Binance, TradingView
Extrapolating from the analyst forecast, the Bitcoin uptrend remains valid until the upper limit defined by the rising trend line is “touched”. However, it is not known when this level will be exceeded.
Once this line is tested and the coin is above $250,000, it is likely to follow its historical pattern and cool down. The depth of this retracement is not yet defined but is expected to be deep as BitQuant said the coin will “die.”
BitQuant explained that this “dying period” refers to the price of Bitcoin falling below its previous all-time high. The decline is expected. This is common after the halving as supply tends to increase when demand for the coin decreases. Despite this temporary setback, BitQuant remains confident that BTC will regain momentum and continue its long-term bullish trend.
Although the analyst remains optimistic, it is unclear how prices will perform for now. The US Securities and Exchange Commission (SEC) recently approved several places for Bitcoin exchange-traded funds (ETFs).
Even as issuers have increased their purchases, Grayscale Investments has liquidated its Grayscale Bitcoin Trust (GBTC), selling shares and offloading coins through exchanges.
Youngest Data from Lookonchain revealed that GBTC mined 10,872 BTC worth over $447 million on January 25th. Meanwhile, eight spot Bitcoin ETF issuers added 8,744 BTC, with BlackRock adding 4,284 BTC. On January 24, GBTC reduced 13,179 BTC, with Fidelity Investments, another spot Bitcoin ETF issuer, purchasing 4,023 BTC.
GBTC unloads BTC | Source: Lookonchain via X
As BTC found demand, prices started to stabilize if you look at the development on the daily chart. The coin is stable above $39,500 and is resisting the strong selling pressure from January 22nd.
Feature image from Canva, chart from TradingView
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers
Comments are closed.