Bitcoin After a period of volatility, it has returned to levels above $41,000. Against the backdrop of industry exodus, BTC has fallen below the $40,000 mark several times.
Friday’s nearly 5% rally creates a cautious tone for the market, at least in the short term. This is because investors are hoping for a pre-halving rally by April. Historical data typically shows a bullish period for Kingcoin during this period.
But analysts warn that the road to recovery could be difficult.
Bitcoin consolidation before new peak
Analyst Michael van de Poppe said in a post on
“It’s going pretty well according to plan,” he said.
Chris Burniske, co-founder of venture firm Placeholder, shares the detailed outlook: Bitcoin’s Trajectory. He believes the market will further decline and consolidate, a view shaped by factors such as market-specific trends, macroeconomic conditions, adoption rates and new product development.
He predicts that Bitcoin could bottom in at least the $30,000 to $36,000 range, testing the mid-to-high $20,000 range before heading toward all-time highs. I haven’t ruled out the possibility either. He expects the journey to be eventful and likely to last several months, with deceptive gatherings.
prudent investment approach
“As always, patience is your friend,” Berniske added.
Berniske suggests that altcoins may experience greater decline rates than Bitcoin.
Despite his caution in the short term, Berniske is confident in the long term.
Notably, he focuses on local peaks and troughs rather than an assessment of the cycle as a whole after the cycle bottom in November 2022.
With new product innovations on the horizon but not yet fully realized, he emphasizes the importance of strategic preparation rather than drastic risk mitigation, suggesting a cautious approach to market volatility.
Also read: Bitcoin price surpassed $41,000 on Friday, could BTC rise to $43,000 this weekend?