What Impact Will Bitcoin Halving Have on the Market? Will Bitcoin Break $100,000?
After a slight uptick, the cryptocurrency market is consolidating again as bullish momentum wanes. Buying pressure is gradually diminishing, and the prices of most tokens, including Bitcoin, have fallen to near key support areas. Although the quarter-end is expected to be bullish, this is why Bitcoin’s price is predicted to go off track after the Bitcoin halving, paving the way for the flourishing of altcoins.
BTC’s price has been hovering within a range for the past 48 hours, and technical indicators do not seem to favor a bullish outlook. Nonetheless, it is believed that the price will maintain a strong upward trend prior to the halving. Afterward, the price may not experience a strong correction, but altcoins are expected to make significant gains. This is mainly because BTC’s dominance is approaching a key resistance level, which could lead to a bearish pullback.
The chart above shows the weekly trend of Bitcoin’s market dominance, with Bitcoin consolidating above a critical resistance area. This level has been fluctuating within a rising wedge and could continue for 3 to 4 weeks before potentially reaching a peak. Additionally, the current consolidation appears to be repeating the pattern seen before the significant drop in 2019-2020.
Therefore, both indicate a major pullback, which could force BTC prices to trade within a range or be in an upward consolidation phase. A popular analyst, Michael van de Poppe, speculated on a similar price movement, suggesting that dominance might decline after the halving. Moreover, he mentioned that the BTC valuation of altcoins is “super low” at the moment, hence interest in buying them could be strong.