The Bitcoin Bear Is Back. What Happens Next?

Ever since the Bitcoin ETF applications were approved, the Bitcoin bear is back and Bitcoin and the wider crypto market is seeing a correction.

Looking at the Bitcoin chart this morning, it is down nearly 9% over the past 7 days and is now hovering around the $39,000 level.

But the question is, what happens next to Bitcoin and the wider crypto market?

To answer this question, we need to look back at the historical charts for Bitcoin because Bitcoin follows a very repeatable cycle so we can use this to predict what happens next.

Below is the historical Bitcoin chart that shows the previous Bitcoin halving events.

Chart courtesy of Nestay on X.

The chart above shows all of the previous Bitcoin cycles and halving events and what we're really interested in, is looking back at previous cycles prior to previous halving events.

If you look at the above chart, we can see that just prior to previous halving events, we have seen a price correction and then a rally to a new Bitcoin all time high in the months following the halving event.

And this is why as a crypto investor and trader, looking at what's happening with Bitcoin is so important.

Bitcoin is the most important indicator of whether money is flowing in and out of crypto because if Bitcoin drops in price, the rest of the market follows and if Bitcoin rallies, so does the rest of the crypto market. 

So if we can predict when Bitcoin is going to rally, we can then predict when the rest of the crypto market will rally.

So here is what I estimate will happen next.

I think we're going to see Bitcoin dip further maybe hitting the $38K to $35K level and then once we hit these prices, we may see traders buying the dip which may cause a rally to above $40,000 again.

So between now and Bitcoin's halving at the end of April, we will see a dip and then a recovery but in the months following Bitcoins halving, we will see Bitcoin rallying to a new all time high.

And as Bitcoin rallies, the rest of the crypto market will follow as money flows into Bitcoin and wider crypto market.

So I think we'll see Bitcoin start grinding to a new all time high in May/June and then the rest of the crypto market will start rallying in a big way from late summer onwards and into the autumn.

So now is the perfect time for crypto investors and traders to accumulate positions and getting ready for the crypto market to start the bull run proper after Bitcoin's halving.

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