Bitcoin could potentially drop to much lower levels and still maintain its bull market and historical trajectory. This possibility comes despite a 10% drop within 24 hours, according to the latest optimistic Bitcoin price analysis that illustrates how the BTC/USD pair has been performing. Market participants have long agreed that Bitcoin continues to follow its classic path toward new macro peaks.
Why Is Bitcoin Dropping?
Bitcoin‘s price continues its current bull run without complete disruption, despite increased volatility around its all-time high of $69,000 in 2021. According to data from TradingView, even if a much deeper correction occurs from the current levels around $68,000, the situation is expected to remain the same.
Investor known by the pseudonym “Bags” focused on the upcoming block subsidy halving in his comments made on March 15th. Comparing it to previous halving cycles, Bags noted that each had seen major price drops of about 40% before the event, which then transitioned to price discovery:
“We are currently at a 38% drop from the $73,500 level, which is $45,500.”
When asked about the inflows from United States spot Bitcoin exchange-traded funds revitalizing the market in ways not seen in previous cycles, Bags pointed out that each bull market had its own factors and still could not prevent a downturn.
Prominent Figure Comments on Bitcoin
Popular investor and analyst Rekt Capital is also monitoring price performance related to the halving process. Despite Bitcoin reaching an all-time high before the 2024 halving event, he suggests that the timing continues to be indicative of a classic bull market scenario. The analyst compared this year’s behavior to that of the last halving year in 2020 in a chart he uploaded:
“Technically, Bitcoin is still in the pre-halving rally phase (light blue). However, Bitcoin is on the verge of transitioning from the pre-halving rally phase to the pre-halving retrace phase (orange and dark blue circles).”
In another article, it was warned that the BTC/USD pair is about to enter the most dangerous part of the pre-halving stage, referred to as the risk zone:
“Historically, Bitcoin has experienced pre-halving retracements 14-28 days before the halving event.”
