According to recent research by DecenTrader, Bitcoin might be about to experience a pre-halving sell-off that would put investors’ resolve to the test before hitting record highs in the fourth quarter of 2024.

Remarkable cryptocurrency market analysis software DecenTrader has investigated past trends related to Bitcoin halving occasions. The research shows market movement consistent with a classic halving year, indicating a period of possible volatility and unpredictability before the expected halved occurrence.

About every four years, Bitcoin experiences a halving, a planned event in its protocol that halves the rate at which new Bitcoins are created. The scarcity mechanism has been linked to notable fluctuations in price in the past, drawing the interest of both analysts and investors.

Analysts Disclose Factors that Would Influence the BTC Price Boom

If it happens, the pre-halving sell-off is considered an inevitable step in how much Bitcoin will cost. Investors who have experienced past halve events know that there often are brief swings in the months preceding the halving.

Historical analysis says that Bitcoin has proven to be resilient and able to recover from the volatility that preceded the halving event to hit new all-time highs in the following months. Analysis by Gideon Wolf on Coinotag says that the broader economic landscape, which also involves the macroeconomic issues, with a touch of geopolitical tensions, has the propensity to influence the price trajectory of the BTC in months to come.

Other factors like a stable United States banking sector and its implications in the broader risk-base assets market were cited as potential obstacles. There has been a disputing option on the timing of the potential boom of the BTC. However, some analysts are projecting that such an event may only happen at the end of 2025. 

Current BTC Helving Uses 2020 Helving Pattern May Reach $49,000

The fourth quarter of 2024 will be critical for Bitcoin’s price to peak. Analysts and investors are actively watching this period as a possible window for large profits. The prediction coming from the BTC community says that there will be more of a rise in the buying section, which would propel the halving.

It was also stated that the helving is pushing the BTC to a two-year high of $49,000. This event could be followed by a high sell-off, a reaction that often happens after previous major achievements in the cryptocurrency sector. 

The BTC’s post-halving outlook has been bullish amid the conflicting industry predictions. There has also been an expectation of venturing into a more where it comes up with a new price and going for an all-time high towards the end of 2024. This is similar to the BTC’s pattern after the 2020 industry halving.

Price of BTC Expected to Rise by Fourth Quarter, As it Remains Positive 

It is recommended that market participants approach the pre-halving period with a well-informed and strategic perspective. This expected volatility is seen as a typical feature of the market cycle that puts investors’ fortitude to the test. The overall picture, however, is still positive, with estimates pointing to a possible price peak in the fourth quarter of 2024.

According to DecenTrader, the BTC is expected to have a sideways movement before reacting to the expected halving event, which, according to the available data, will happen on the 18th of April, 2024. This part is seen as an important aspect of preparing to ground for the so-called “buying spree,” which is expected to start two months before the halving.