Following the 2016 halving, bitcoin declined by over 25% before hitting a new all-time high in 2017.
Expert trader Peter Brandt has made a bold prediction about bitcoin’s future, noting that the current decline in the asset’s value mirrors the 2016 price drop. Despite the prevailing pessimism among analysts, Brandt’s unique perspective, shaped by his experience with a similar market move, sees this as a potential trigger for a substantial price surge.
Price Action Mirrors 2016 Movement
In an X post on Monday, Brandt revealed a significant similarity between this year’s bitcoin price dip and the 2016 post-halving price movement. To explain this, Brandt shared a table comparing BTC price actions following the last three halving events.
In 2016, the Bitcoin halving took place on July 9, and bitcoin was trading at $650 per coin. Weeks after the halving, it dropped 27% to $474. However, within the next few months, the leading cryptocurrency shot up to a new all-time high, reaching $20,000 per BTC in December 2017.
On April 20, 2024, the week of the fourth Bitcoin halving, the crypto asset traded at $64,962 and rallied above above the $73k mark for the first time in history. However, 16 weeks into the halving, BTC dropped by 26% to $49,050 earlier this week.
Considering the identical price movement, Brandt urged investors to have a positive outlook on the crypto market.
Supporting Brandt, CEO of ITC Crypto, Benjamin Cowen, said that the current crypto market cycle is following the same pattern as the 2019 market cycle when the market went high in the first half of the year and retraced within the concluding half.
Analysts Predict Further Dip
Following BTC price plummeting below $50k, with $1 billion liquidated within 24 hours, financial analysts are no longer unsure of the next market movement. However, a few have voiced predictions of a further dip.
Analyst Mckenna advised investors not to expect a speedy recovery in bitcoin’s price. “This isn’t a V-bottom scenario. Believe value will remain cheap for some time and enter an accumulation market phase,” he said, adding that “The rest of the market, we will be sideways for 1-2 months.”
Since dropping below $50k on Monday morning, the bitcoin price chart has shown a few signs of recovery. It passed the $57,700 mark today and trades within the $55,800 and $56,100 range at press time.
