After the shock period following the collapse of FTX, cryptocurrencies are entering a new phase that is not unanimous.
Crypto at a crossroads
After ten days under the influence of the downtrend, are cryptocurrencies already recovering from the crisis? While we feared a major capitulation period, the price of the latter is currently in full recovery. Bitcoin for example, its value has increased by 6% in the last 24 hours.
Enough to give some hope to the crypto sphere, as some experts point out that this period of calm can precede both good and bad news. According to Michaël van de Poppe, the phenomenon of horizontal evolution may continue throughout the week, where BTC should trade around $16,000. However, the expert believes that the little orange coin should then return to around $18,000 at best.
However, beware, Michaël van de Poppe did not comment on the persistence of the phenomenon or the possibility of an end. Therefore, it may be that this rally is only temporary and that a new downtrend will emerge if another bankruptcy-type incident or scandal were to occur in crypto.
Capitulation would still be important
For others, this improvement in the price of cryptocurrencies should not be taken at face value. Crypto analyst Capo gives a completely different story and thinks that the current period would only be a test. Thus, the trend would be again and again to surrender while the diagrams issued by the courts would only be traps.
The expert also warns of the ambient enthusiasm that is rampant within the crypto sector and that could prompt holders, happy to see their favorite coin at $16,000, to buy some tokens before reselling them at the strike small, which would bring down the price of Bitcoin. and her other wives down again. Therefore, the Capo of Crypto seems to think that this resistance would only be a lull before the orange coin reaches $12,000.
Halving as the new target
Meanwhile, other analyzes allow themselves to see further and, at the risk of contradicting the most optimistic, look for a final improvement only in 2024. This hypothesis had already been raised by Jesse Powell before being acquired by Pantera Capital. Crypto hedge fund rated as well as April 20, 2024 will be a key date. Bitcoin will halve, as is tradition every 4 years, which should cause its value to explode.
The next halving is expected to take place on April 20, 2024. The mining reward will increase from 6.25 BTC per block to 3.125 BTC per block. […] If the demand for new bitcoins remains constant and the supply of new bitcoins is halved, this will increase the price. Over the years we’ve emphasized that the halving is a big event – but it takes years to unfold. The typical low is 1.3 years before the halving and, on average, the market peaks 1.3 years after.
Excerpt from Pantera Capital’s article on the halving
However, these predictions should be taken with a grain of salt as Pantera Capital specifies that they are made by comparing previous cycles and identifying a pattern. Thus, the document refers to a end Bitcoin final around December 30, 2022, followed by a full-scale rally. However, this data will only be accurate if the current situation does not follow the pattern of its predecessors. So there’s still a wide margin of error, especially since many experts believe 2022 is pretty unique compared to what we’ve already seen.
All information on our website is published in good faith and for general information purposes only. Any action taken by the reader based on the information found on our website is entirely at his own risk.