The Bitcoin price was close to breaking the $31,000 resistance two days ago. The breakthrough, however, did not come and the price fell back below $30,000, although a breakout of the consolidation could trigger massive price rallies.
In recent weeks, the price of Bitcoin has not been able to break out of the range between $30,000 and $31,000. Previously, the price of Bitcoin rose from below $25,000 to $31,000 as the market recovered from the crash in early June.
Bitcoin stabilized between $30,000 and $31,000 after the sharp rise triggered by asset manager Blackrock’s announcement of a Bitcoin ETF. Just a couple of days ago, the price managed to rally back above $31,000 but failed to break the resistance.
Reasons for a Possible Sharp Bitcoin Price Rise Soon
The Bitcoin price could see a price explosion in the coming weeks, as the breakout of the consolidation phase could bring about a massive bull run. The $31,000 resistance has been around for several weeks, holding Bitcoin price back for a long time. A breakout of resistance should be followed by a sharp rise.
An approval of the Bitcoin ETF by Blackrock and/or other asset manager ETFs could intensify the bull run again. So it seems possible that the price of Bitcoin could rise above $40,000 in the coming weeks.
Is It Possible to Cut $100,000 in Half?
At the moment, it still seems difficult to imagine that the price of Bitcoin could reach the all-time high and even exceed it in the coming months, as the all-time high was reached in the past, especially after the Bitcoin halving. In a bear market, this is extremely unlikely.
Nevertheless, upcoming ETFs, and especially interest from Blackrock, the world’s largest asset manager, could send the price unusually steep even before the Bitcoin Halving.
A rise to the $100,000 mark still seems extremely unlikely at this point. But it is difficult for us to estimate how massive the influence of Bitcoin ETFs and the growing interest of big players in the financial market may be. Therefore, we do not want to rule out that Bitcoin ETFs could send the price up massively in the coming months.
An Expert Talks about the Halving Effect
On-chain analyst Timo Oinonen shared his prediction of the Bitcoin price to $100,000 in the framework of the halving that will occur in 2024. The analyst pointed out that the price of Bitcoin could reach $100,000 dollars, based on the 69% increase that the cryptocurrency has experienced throughout this year.
Oinonen highlighted that the correlation between Bitcoin and the Nasdaq 100 has weakened, falling 60% since last October:
“In a bigger picture, the behavior of the Bitcoin market can be segmented into accumulation (turquoise) and distribution (purple) phases, which form a sequence of multi-year cycles.”
As for the effect of the 2024 halving on the price of Bitcoin, the on-chain analyst states that the event “represents a paradigm shift in the sequence of Bitcoin market cycles.”
He also emphasizes that, in the history of Bitcoin trading, halvings have been preceded by accumulation cycles leading up to the event.
These cycles have been favored by institutional investors, while distribution cycles have been characterized by retail demand. In this sense, he adds that “After reaching the target price based on 2019 of $46,092, it is easy to see Bitcoin reaching 100,000 after the 2024 halving.”
By Marina Meza
