Data indicates possible growth following the predicted halving event in 2024, even while Bitcoin is stuck around $26,000 and the rest of the cryptocurrency market is experiencing a gloomy sentiment. Analysts are upbeat about long-term possibilities, despite short-term estimates that point to additional price declines, possibly to $23,000, according to trading firm FxPro.
Cryptocurrencies like Dogecoin and Ripple’s XRP, which both fell by around 4% during the past 24 hours, were at the forefront of the market downturn. While the CoinDesk Market Index, which monitors hundreds of tokens, fell by 1.1%, Ether declined by 0.9%, outperforming the overall market. In spite of a variety of growth drivers, only ImmutableX’s IMX, Chainlink’s LINK, and Aptos’s APT registered advances, each gaining by up to 6%.
According to on-chain analytics provider CryptoQuant, Bitcoin’s price cycle is consistent with earlier cycles. They suggest that until the 2024 halving event, Bitcoin is expected to continue in a consolidation phase before potentially seeing a major price increase. A number of long-term valuation indicators and logarithmic growth curves corroborate this. Additionally, the realised cap of short-term user transactions, which suggests under-valuation, promotes the possibility of future price growth.
The price of bitcoin has generally increased after halvings, which reduce block rewards by half about every four years. The following halving is anticipated to occur on April 21, 2024.
