January Bitcoin Dips Are Just Part of the Halving Cycle — Analysts

Historically, the leading cryptocurrency has faced more pronounced corrections during similar periods of the market cycle.

Historical patterns of post-halving corrections in January

In January 2021, Bitcoin saw a sharp 25% decline, falling from over $40,000 to just over $30,000. However, an impressive rally followed, peaking at an all-time high of $69,000 in November of the same year. A similar pattern emerged in January 2017 when Bitcoin fell 30%, but then rose 2,400% to $20,000 by December.

Historical patterns of post-halving corrections in January

BTC’s January declines are a typical post-halving trend. source: Axel Pitblaze via X

Cryptocurrency analyst Axel Bitblaz commented on this recurring trend saying: “Bitcoin dumping in January has historically been a common occurrence in the post-halving years. We all know what happened after the dumps of 2017 and 2021.” Spoiler alert – the price is up.

RSI

Bitcoin monthly chart highlighting Relative Strength Index (RSI) trends (colour-coded). source: Stock money lizards via X

Bitcoin, which peaked at $102,300 earlier this month, briefly fell to $92,000 before recovering to its current level of about $95,000. Despite the decline, analysts stress that this correction pales in comparison to previous declines in January.

A cycle that has not yet reached its peak?

Some market watchers believe that Bitcoin has not yet entered the “final hype/pump phase.” Stockmoney Lizards, a prominent market analysis account, remains bullish on Bitcoin’s long-term prospects. “This cycle has more fuel in the next 12 months,” one account said, pointing to such catalysts as mass adoption, friendly legislation, and general interest in Bitcoin ETFs. This is in addition to the strong possibility of a Trump pump.

A cycle that has not yet reached its peak?

Analysts indicate that this decline is moderate compared to the declines of last January. source: Axel Pitblaze via X

Particular attention has been paid to the introduction of spot Bitcoin ETFs as a game-changer. These funds are expected to attract significant amounts of institutional capital, adding liquidity and stability to the cryptocurrency market.

Looking ahead: What 2025 may hold for Bitcoin

In 2025, some of the key drivers for the cryptocurrency market include increasing institutional adoption, progressive government policies, and support from President Trump, providing a platform for more sustainable growth. This is also evidenced by reports of some governments considering strategic Bitcoin reserves in an attempt to manage inflation – a move that would strengthen the role of the digital asset as a hedge against economic uncertainty.

Bitcoin prediction 2024

Bitcoin is up 5% in the past 24 hours. source:Bitcoin Liquid Index (BLX) via Brave new coin

Following historical patterns, Bitcoin could rise by 130% later in the current cycle and could push its price above $200,000 by late 2025. Analysts warn that if the market follows the size of the previous January corrections, prices could fall further to… About $70,000 before recovery.

An early stagnation in January looked very worrying to some, but by history, it is a normal course for the post-halving cycle. It is natural for it to be volatile in the short term, but on an upward trajectory in the long term, accompanied by broad strides in adoption, regulatory clarity, and institutional interest. Investors and analysts alike are sure to keep their eyes glued to how 2025 unfolds with the potential for another historic year for Bitcoin. For those investors wondering if this is a good time to buy Bitcoin, the best time was ten years ago, and the next best time is actually now. While Bitcoin is still below $100,000, Bitcoin is considered a buy. We expect it to return above $100,000 within days.

Source: https://bravenewcoin.com/insights/january-bitcoin-dips-are-just-part-of-the-halving-cycle-analysts

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