Bitcoin January slump nothing new in ‘post-halving years’ — Analysts
From cointelegraph by Martin Young
A major Bitcoin correction in the first month of a year after the blockchain sees a halving is historically not unusual, according to analysts who have compared previous cycles.
“Bitcoin dumping in January has historically been a common occurrence in post-halving years,” crypto analyst Axel Bitblaze told his 123,000 X followers on Jan. 12. “We all know what happened after the 2017 and 2021 dumps.”
Bitcoin BTC$93,462 has lost 10% so far this month in a fall from its high of $102,300 on Jan. 7 to just below $92,000 before recovering slightly to now hover around $94,000.
In January 2021, the next most recent post-halving year, Bitcoin fell more than 25% from over $40,000 to just above $30,000 by the end of the month. It then skyrocketed 130% to a new all-time high of $69,000 by November.
In January 2017, the year after the 2016 halving, Bitcoin slumped 30%, falling from $1,130 to $784. It then surged 2,400% that year, culminating in an all-time high of $20,000 by December.
Bitcoin post-halving year January slumps. Source: Axel Bitblaze
Meanwhile, YouTuber and analyst Crypto Rover observed that Bitcoin has consistently dropped in the first half of the month for the past year.
“This is just a small dip compared to what we’ve seen before,” he said.
“Bitcoin has NOT reached the ultimate hype/pump phase,” posted the finance analysis Stockmoney Lizards X account on Jan. 12. “This cycle has more fuel in the coming 12 months.”
Bitcoin monthly chart with RSI color coding. Source: Stockmoney Lizards
The analyst acknowledged that things were a bit different in every cycle but added that “with mass adoption, pro-crypto governments worldwide, ETFs, etc. I think it underlines our hypothesis.”
A 130% move similar to that in the peak year of the previous cycle could send BTC prices from current levels to over $200,000 before the end of 2025.
On the flip side, a pullback of the magnitude seen in January of the last two cycles could send prices below $70,000.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Analysis Firm Says 12 Altcoin ETFs Could Be Approved in 2025, Announces First ETF to Get Approval!
Laser Digital noted that 2025 could be a big year for crypto ETFs.
Bitcoin Price Prediction: Price Falls Below $91k as Mining Difficulty Hits New HighThe Difficulty Adjustment
FLOKI, BONK, PENGU, AI16Z: Meme Coins Hit by Crypto Collapse
MicroStrategy acquires another 2,530 BTC for $243 million, taking holdings to 450,000 BTC
MicroStrategy has purchased another 2,530 BTC for approximately $243 million at an average price of $95,972 per bitcoin.The latest acquisitions follow the sale of MicroStrategy shares equivalent to the same amount.