Bitcoin’s recent price volatility and recovery spark optimism for a potential return to its all-time high (ATH), analysts speculate.
Bitcoin’s Recent Rollercoaster Ride
From soaring beyond its previous all-time highs of November 2021, Bitcoin made a new record the previous week by soaring over $73,000. Making a rollercoaster ride this month, Bitcoin has experienced extreme lows of $50,836 and then a new all-time high of $73,750.
However, the journey to the ATH was not without hurdles. Bitcoin faced a subsequent correction, plummeting to $61,164, down 7.36% over the past week.
The major reason behind the Bitcoin rally is partly attributed partly to the embrace of spot Bitcoin ETFs and the huge inflows bought in by major institutions like BlackRock and Fidelity Investments.
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Is Bitcoin Heading for a Bull Run?
Following the dip to $61,164, Bitcoin is showing signs of recovery, witnessing a 6.2% surge in just 24 hours, reaching $67,359.
However, van de Poppe through his price chart analysis warns of potential downside risks, suggesting a drop to the support range between $59,000 and $60,700 if Bitcoin fails to breach the $70,300 resistance zone.
Otherwise, Bitcoin has the potential to reach a new all-time high prior to the next halving which is impending within the next 30 days.
Historical Precedent and Outlook
Bitcoin’s historical price performance before and after previous halving events has been quite notable. On average, Bitcoin has witnessed an increase of 61% in the six months prior to the halving events, and 348% in the six months after halving events.
While optimism surrounds the upcoming halving event, Coinbase warns investors to trade cautiously as Bitcoin price is affected by a number of factors such as macroeconomic trends and institutional acquisitions.
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