Bitcoin’s daily chart indicates a struggle for momentum among bullish investors. Despite a rebound on August 8, the lack of follow-through from buyers suggests a cautious market awaiting further confirmation.
The current trading patterns show bitcoin prices consolidating in a bull flag formation since August 8. The historical trend post-Halving suggests a period of subdued activity before a potential surge in prices.
CEO of CryQuant Forecasts Bitcoin Rally in Q4 2024
Ki Young Ju, CEO of CryptoQuant, highlights the tendency for prices to consolidate after network halving events, with a subsequent upward trend later in the year due to intervention by large holders. Drawing parallels to the 2020 halving cycle, Ju predicts a recovery in Bitcoin prices by Q4 2024.
Analysts view Bitcoin Halving as a bullish event, as it reduces coin supply, potentially driving prices higher under stable or increasing demand.
Factors Affecting Bitcoin’s Outlook: Spot ETFs, Miner Activity, and Interest Rates
The aftermath of the April 20 Halving is expected to create a supply squeeze, with approval of spot Bitcoin ETFs in January reinforcing this outlook. Significant institutional purchases by companies like Fidelity and BlackRock have contributed to this positive sentiment.
Additionally, miners have curbed their coin liquidation, with a recent improvement in hash rate indicating growing confidence among miners. The declining inflation and potential interest rate cuts by the US Federal Reserve in September might position Bitcoin as an inflation hedge, boosting bullish prospects and potentially breaking all-time highs.
