Analysts believe Bitcoin will rise above $200,000 before the next mining reward halving.
As the 4th Bitcoin halving scheduled for April approaches, speculation is rampant, with various industry experts sharing their forecasts. Technical analyst Gert van Lagen believes Bitcoin has the potential to rise to the $200,000 mark ahead of this highly awaited event.
Meteor rally before halving?
After investors “sold the news” of the approval of a spot Bitcoin exchange-traded fund (ETF), cryptocurrency spectators are looking for the next potentially bullish event that could push the cryptocurrency price higher.
Trader Gert van Lagen shared a chart explaining Elliott Wave technical analysis principles. For those who don’t know, this theory postulates that asset price movements can be predicted by observing and identifying repetitive wave patterns caused by investor psychology. In particular, we divide the price cycle into two sets. One consists of five uptrend waves and the other consists of three corrective waves.
$BTC (1W) Elliottwave number parabola moves to $200,000 before halving. Voided: down to $31.8k pic.twitter.com/C34Rt6u6CE — Gert van Lagen (@GertvanLagen) January 15, 2024
The Elliott Wave pattern indicates the possibility of the BTC price reaching $200,000 before the upcoming halving, when the rate of new Bitcoins rewarded to miners will be halved. This bullish sentiment, reinforced by Elliott Wave theory, suggests a strong accumulation phase by investors ahead of an earthquake.
Specifically, after the April halving, miners will receive 3.125 BTC for each verified block. This is half of the current 6.25 BTC. The reason is to suppress the supply of new coins entering the market.
Cryptocurrency community awaits price boom
The U.S. Securities and Exchange Commission’s (SEC) approval of the first spot Bitcoin ETF on January 10th was a groundbreaking moment for the cryptocurrency industry, but the price of BTC did not react as parabolically as many had expected. Immediately after the approval was announced, BTC soared to a two-year high near $49,000 before rebounding.
The world’s largest and oldest cryptocurrency by market capitalization is currently trading at around $42,962, up about 0.7% on the day, according to data from CoinGecko.
Nonetheless, experts argue that demand for ETFs among institutional participants, combined with Bitcoin’s impending block subsidy halving, could push the royal cryptocurrency to new heights in the short to medium term.
Bitcoin bull and MicroStrategy Chairman Michael Saylor has previously said that the combination of the halving and the historic approval of a spot BTC ETF could result in massive amounts of investment funds pouring into the market. And he put his money where his mouth was. MicroStrategy currently holds approximately $8 billion in Bitcoin.
