Bitcoin Revealed a Cautious Pre-Halving Tale With Dips And Recovery

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Bitcoin has seen a resurgence above the $41,000 level, following a period of instability. On the back of industry outflows, BTC dipped below the $40,000 threshold on several occasions.

The recovery of nearly 5% on Friday sets a cautious tone in the market, at least for the near term. This is because investors are expecting a pre-halving rally before April. Historical data typically signals a bullish period for the king coin during this period.

However, analysts are cautioning that the path to recovery might be bumpy.

Bitcoin consolidation before new peak

Analyst Michaël van de Poppe noted in a post on X that a consolidation phase is likely before Bitcoin can aim for new highs.

“It’s going pretty well as planned,” he stated.

Chris Burniske, co-founder of the venture firm Placeholder, shares a detailed outlook on Bitcoin’s trajectory. He believes the market will drop further to consolidate—a view shaped by factors such as market-specific dynamics, macroeconomic conditions, adoption rates, and new product developments.

He projects that Bitcoin may bottom out at least in the $30,000 to $36,000 range and doesn’t rule out a test of the mid-to-high $20,000s before it can progress toward previous all-time highs. This journey, he anticipates, will be tumultuous and could span several months, featuring deceptive rallies.

Measured investment approach

“As always, patience is your friend,” Burniske added.

Burniske suggests that altcoins may experience greater percentage drops than Bitcoin.

Despite near-term caution, Burniske is confident in the long term.

Notably, he is focusing on a local peak and trough rather than a cycle-wide evaluation after the cycle bottom in November 2022.

With new product innovations on the horizon yet to fully materialize, he stresses the importance of strategic preparation rather than significant de-risking, signaling a measured approach to the market’s volatility.

Also Read: Bitcoin Price Zooms Past $41k On Friday, Can BTC Rally To $43k This Weekend?

The post Bitcoin Revealed a Cautious Pre-Halving Tale With Dips And Recovery appeared first on CoinGape.

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