Originally published on: August 06, 2024
Bitcoin’s decline post-April 2024 halving is drawing comparisons to the early stages of the 2016 bull run, as noted by experienced trader Peter Brandt.
In a recent analysis on Aug. 5, Brandt pointed out that the current BTC decline post-halving is reminiscent of the 2015-2017 halving cycle, highlighting the depth of market corrections in both instances.
During the 2016 halving, Bitcoin’s price dropped to $474 from $650 within a month, marking a 27% decline before soaring to a cycle high of $20,000 in December 2017.
Similarly, the recent drop in Bitcoin’s price below $50,000 indicates a 26% decline from the post-halving high of $64,962.
While there are concerns about Bitcoin potentially dropping further, some analysts remain optimistic.
On Aug. 5, Bitcoin prices plunged to $49,221, falling by double digits according to CoinGecko. Despite losing 20% from its peak in late July, Bitcoin quickly rebounded to $56,000 during Asian trading on Aug. 6.
Reflecting on the situation, ITC Crypto founder Benjamin Cowen noted similarities with the 2019 market pattern, where a surge in the first half of the year was followed by a significant correction in the second half.
Tim Kravchunovsky, CEO of Chirp, emphasized that crypto assets could recover swiftly due to macroeconomic factors influencing market movements. He cited the rapid recovery seen in crypto markets following the pandemic-induced collapse in 2020.
Overall, while Bitcoin’s recent decline is drawing parallels to past market cycles, there is optimism that the cryptocurrency could bounce back quickly, similar to previous recoveries from major setbacks.
