The historical data of #bitcoin indicates a robust performance in the fourth quarter, implying the possibility of upward growth in the forthcoming months.
The monthly returns of King coin in the year 2023 have exhibited significant volatility, with a notable range of performance. This range includes a substantial growth of 39.83% in January, followed by a decline of 11.53% in August.
The occurrence of a "Pre-Halving Rally" in Bitcoin is anticipated to take place before to the April 2024 surge leading up to the event. Bitcoin, the dominant cryptocurrency in terms of market capitalization, has exhibited significant volatility throughout the year 2023, with its monthly returns experiencing fluctuations ranging from a peak of 39.83% in January to a trough of -11.53% in August. Based on historical data, it can be observed that Bitcoin has a cyclical pattern, indicating the likelihood of a robust performance in the fourth quarter. According to the notion that history tends to replicate itself, investors may anticipate a surge in market activity preceding the imminent 2024 halving occurrence, slated for April.
The quarterly performance of Bitcoin presents a positive outlook.
A thorough examination of the monthly returns of Bitcoin reveals a robust quarterly performance anticipated in the year 2023. According to calculations conducted by FXStreet, Bitcoin has demonstrated average monthly returns of 6.20% during the first quarter, 30.49% during the second quarter, 4.21% during the third quarter, and 93.38% during the fourth quarter over the course of the past ten years. The data shown indicates that Bitcoin has a tendency to gain upward momentum as the year draws to a close, perhaps leading to another surge associated with the halving event.
When examining the typical monthly returns, it is observed that historically, September has exhibited the lowest performance with negative returns. However, it is anticipated that an upward trend will be experienced in October and November. The last quarter of the year 2023 is anticipated to occur prior to the forthcoming Bitcoin halving event, which is slated to take place in April 2024.
According to the study conducted by Analist on the historical behaviour of Bitcoin before to its halving events, with a specific focus on the 2015 era, there are valuable insights that can be gleaned for investors who are now contemplating the upcoming halving, which is expected to occur in around 200 days. According to the study conducted, it is anticipated that the period leading up to the halving event may see a decline in the price of Bitcoin, followed by a subsequent phase characterised by a range of re-accumulation. According to the market researcher, a phenomenon known as the "Pre-Halving Rally" leads to a local peak in prices due to increased purchasing activity before to the "Post-Halving Parabolic Uptrend." During this uptrend, the price experiences a rapid and significant increase.
The cryptocurrency market experiences a subdued state as Bitcoin has a pattern of forming a "lower high."
On Monday, the global cryptocurrency market remained relatively quiet, as prominent cryptocurrencies had slight declines over the 24-hour period. This may be attributed to a prevailing risk-averse sentiment among investors.
As of the present moment, the valuation of Bitcoin stands at around $27,500, indicating a decrease of almost 60% from its previous all-time high of $69,000 attained in November 2021.
Rekt Capital has underscored that despite the positive macroeconomic indications, Bitcoin has just formed another 'lower high' on Monday, which might be seen as a negative signal.
In recent times, Changpeng Zhao, the Chief Executive Officer (CEO) of #Binance , commonly referred to as CZ, has issued a word of warning on the anticipation of an instantaneous twofold increase in the value of Bitcoin immediately following the occurrence of the halving event. Nevertheless, CZ claimed that in the subsequent year after the halving event, it is common to observe several instances of reaching unprecedented price levels. The forecast has resemblance to Rekt Capital's 'Post-Halving Parabolic Uptrend' analysis.
Hence, it is plausible that temporary volatility may endure, nevertheless, based on the analysis of historical data and insights from market experts, there is an indication of a positive trajectory for Bitcoin as it nears the occurrence of the halving event in 2024. Investors are advised to maintain vigilant observation of the accumulation period and anticipate a rally before to the halving event.
