- The current Bitcoin correction is deemed healthy, with the upcoming halving potentially intensifying it.
- Mid-term prospects remain favorable due to the anticipated inflow into ETFs.
Bitcoin is in a bullish phase of its cycle similar to the situation in December 2020–January 2021, with the current correction being described as “healthy.” This was stated by Crypto.com CEO Kris Marszalek during a CNBC broadcast.
The expert attributed the wave of growth from November lows to the influx of funds into spot Bitcoin ETFs.
“It’s a very successful product. There is a supply issue, so this should be reflected in the price,” he explained.
Marszalek viewed the current correction as a “healthy step, eliminating some leverage in the system.”
“We want to avoid sudden overly aggressive jumps. […] A steady inflow of funds into the industry, into Bitcoin and other coins, will allow the current trend to extend for 12–18 months,” the specialist predicted.
The CEO of Crypto.com based his conclusions on the nature of sentiment among retail investors. In his view, the level of excitement is akin to that of December 2020 or January 2021. The difference lies in lower implied volatility, suggesting a steady price increase.
“I think you will see a consistent increase in quotes. […] This is an asset you want to hold for decades,” Marszalek concluded.
Ahead Lies the ‘Danger Zone’
Analysts at Rekt Capital have shared a fresh assessment of the Bitcoin market situation. They warned of a “danger zone” ahead of the upcoming halving in April.
Experts noted that historically, the price of digital gold has fallen several weeks before the event. This pattern may repeat in the coming week if historical analogies hold true.
In 2 days, Bitcoin will officially enter the “Danger Zone” (orange) where historical Pre-Halving Retraces have begun
Historically, Bitcoin has performed Pre-Halving Retraces 14-28 days before the Halving
In 2020, this retrace was -20% deep
In 2016, this retrace was -40%… pic.twitter.com/rnKjznsGHk
— Rekt Capital (@rektcapital) March 17, 2024
“In two days, Bitcoin will enter the ‘danger zone’ (highlighted in orange), where pre-halving retraces have historically formed. Historically, the pattern emerged 14–28 days before the event. In 2020, the correction depth was 20%, in 2016 — 40%,” the analysts commented.
ETF Demand to Restore Growth Trajectory
Binance CEO Richard Teng forecasted Bitcoin rising to $80,000 by the end of the year. He cited the expected continued inflow of funds into ETFs from institutional investors.
According to SoSoValue, the net inflow of funds into the product since approval has amounted to $12.15 billion.
“It’s just the beginning,” the top manager stated.
He warned that the movement towards the target “will not follow a straight line.”
Earlier, Glassnode specialists noted that amid the rally of the first cryptocurrency above $70,000, holders began selling to lock in profits.
As reported, JPMorgan analysts predicted a Bitcoin correction to $42,000 following the upcoming halving in April.