Bitcoin, the world's first and most famous cryptocurrency, has a history of volatility and unpredictability.
This trait is often amplified in the lead-up to and aftermath of halving events, which occur approximately every four years and reduce the rate at which new bitcoins are created.
With the next Bitcoin halving expected in 2024, market analysts, investors, and enthusiasts are speculating whether the price of Bitcoin will reach $160K by that time.
Will Bitcoin Surge by 500% in a Year?
As Bitcoin's next halving, which is less than a year away, sparks debates among market players, some suggest that this event could pave the way for a new all-time high, aligning with the trends observed in previous halving cycles.
A popular analyst, TechDev, has projected a "parabolic top" around the time of the 2024 halving, with the BTC/USD expected to peak at around $160,000. This is based on a crypto chart patterns analysis involving resistance lines, Fibonacci retracement levels, and the previous all-time high from 2021.
Short Term Outlook
However, this prediction doesn't align with all views in the market. The short-term outlook for Bitcoin seems less optimistic, with some analysts suggesting a deeper price correction may be forthcoming.
At the time of writing, Bitcoin was failing to hold the support levels necessary for upward momentum, leading some market participants to anticipate a further decline in its price.
Longer Term Outlook - Bitcoin Halving Event
Historically, Bitcoin's price has shown significant positive movement following halving events. After the first halving in 2012, the price began to rise shortly afterward.
The second halving in 2016 saw a brief drop on the day of the event, but the price quickly recovered and rose by 284% over the following year. The most recent halving in 2020 resulted in a price increase of more than 559% one year after the event.
Other analysts and institutions have also given their predictions on the price of Bitcoin by 2024. Dan Tapiero, a crypto analyst, and Geoff Kendrick, the head of crypto research at Standard Chartered Bank, both predict Bitcoin could hit $100,000 by 2024.
Similarly, the pseudonymous analyst PlanB, known for his Stock-to-Flow (S2F) BTC price prediction model, also believes Bitcoin will surpass $100,000 shortly after the next halving event.
Given these varying predictions and the historical performance of Bitcoin around halving events, it seems plausible that Bitcoin could reach or even surpass $160,000 by the next halving.
Will Bitcoin Surge by 500%?
The world of cryptocurrency is notoriously volatile and unpredictable, and numerous factors could impact Bitcoin's price trajectory. As always, it's essential to approach such predictions with caution and make informed decisions based on comprehensive research.