Bitcoin is on the verge of facing a significant challenge before reaching its anticipated all-time high, as cautioned by DecenTrader. CEO and co-founder Filbfilb suggests that investors should prepare for a familiar trend in price action as the cryptocurrency approaches block subsidy halving.
According to Filbfilb’s projections, Bitcoin is likely to undergo a period of sideways trading for about a month before market dynamics respond to the impending halving, currently scheduled for April 18. He expects an increase in buying activity approximately two months before the halving, followed by a subsequent “sell the news event,” similar to past occurrences such as the introduction of spot Bitcoin exchange-traded funds (ETFs) in January.
With approximately 75 days left until the halving, Filbfilb indicates that buying interest may emerge no later than six weeks before the event, approximately in the second week of March. However, navigating the first quarter of the year may prove challenging for traders due to a combination of Bitcoin-specific factors and broader macroeconomic and geopolitical uncertainties.
Concerns about the fragility of the United States banking system, as highlighted by former BitMEX CEO Arthur Hayes, could exacerbate market volatility, potentially affecting various risk assets. Some analysts even suggest that Bitcoin may not achieve an all-time high until the end of 2025.
Given this backdrop, Filbfilb advises against undue optimism regarding Bitcoin’s price trajectory in the coming weeks. He observes a prevailing trend where many investors harbor excessive optimism, believing that Bitcoin will surge to new highs before halving due to perceived differences in market dynamics. However, Filbfilb underscores the importance of vigilance, suggesting that historical patterns may repeat themselves as Bitcoin progresses toward a new all-time high.