Traders anticipate bitcoin to match the 2016 rally, eyeing the $350K price target

Reflecting its 2016 success, Bitcoin might be gearing up for another substantial rally, with some top cryptocurrency traders predicting highs up to $350,000. This potential surge follows a pattern seen after previous bitcoin halving events

By Shashank Bhardwaj

Published: May 13, 2024 06:14:07 PM IST

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After Bitcoin's halving event, there is plenty of speculation regarding its performance mirroring the significant rally in 2016. Historically, Bitcoin halving, which occur approximately every four years, have preceded major price surges. For instance, following the 2016 bitcoin halving, Bitcoin saw an exponential increase in its value, eventually peaking in late 2017.

Bitcoin is echoing its 2016 performance as traders and analysts anticipate a significant rally following the recent halving event. Drawing parallels from previous cycles, some market observers are getting perhaps a little too optimistic and predicting Bitcoin's price could reach as high as $350,000, spurred by the reduced miner rewards and historical post-halving trends.

After the latest bitcoin halving, which saw miner rewards cut from 6.25 BTC to 3.125 BTC per block, there's renewed interest and speculation in the market. This bitcoin halving process historically leads to a significant uptick in Bitcoin's price as supply tightens. These events often influence Bitcoin's trading patterns and investor sentiment, as seen in the increased trading volume and open interest in long positions following the bitcoin halving.

Statistically, post-halving periods have historically initiated bull runs. For instance, post the 2012 and 2016 halvings, Bitcoin prices increased significantly within the following year. The 2016 bitcoin halving saw Bitcoin at about $650. By December 2017, the price had skyrocketed to nearly $20,000.

Despite some bearish forecasts, overarching sentiment remains bullish, with traders setting substantial price targets for the near future. The enthusiasm is not just about short-term gains; many look at a longer-term horizon where Bitcoin could potentially mirror or even exceed its past peaks following previous bitcoin halving.

Shashank is the founder of yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash