The fourth-ever Bitcoin halving, which occurred on April 20, could give rise to the “most bullish” Bitcoin cycle, based on historical chart patterns combined with the presence of spot Bitcoin exchange-traded funds (ETFs).
For the first time in crypto history, Bitcoin’s (BTC) price reached a new all-time high of above $73,600 on March 13, before the halving event. Historically, Bitcoin price rallied to new highs in 518 to 546 days after previous halving events.
The pre-halving all-time high, combined with institutional inflows from the ten United States spot Bitcoin ETFs, created the “most bullish setup” for Bitcoin, according to Sukhveer Sanghera, founder and CEO of Earth Wallet. He told Cointelegraph:
“The combination of nearly all BTC having been mined, early investor via ETFs, increasing demand for inflation hedges, and increased utility — all fundamental aspects of Bitcoin’s value proposition are stronger than ever before.”BTC/USD, 1-week chart, with halving events. Source: Rekt Capital
Bitcoin price fell 5.6% on the weekly chart, to trade above $63,600, as of 9:58 a.m. in UTC. The world’s first cryptocurrency only rose 2.85% during the past month but rallied over 50% since the beginning of 2024, TradingView data shows.
BTC/USD, YTD chart. Source: TradingView
While Bitcoin’s price action is expected to be bullish in the long term, halvings are historically preceded by short-term corrections.
Bitcoin price could see the end of the current drawdown if price manages to rise above the $65,000 resistance, according to Temujin Louie, the CEO of Wanchain. He told Cointelegraph:
“Historically, Bitcoin halvings were followed by a slump. Expect to see continued consolidation so long as support around $58,000 holds. If BTC breaks recent highs, look for a rapid increase to $80,000, $90,000, or even $100,000 as investors favor round numbers.”
Related: New Bitcoin whales, ETFs are up only 1.6% in unrealized profit — Is the BTC bottom in?
Bitcoin ETF inflows see temporary slump ahead of the halving
The past month’s lagging price action is mainly attributed to slowing Bitcoin accumulation in the ten…
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