The magnitude of Bitcoin's recent sell-off surprised even some of the savviest traders. However, Jehan Chu of Kenetic Capital believes that the crypto king could witness a 'rapid turnaround' in the run-up to the forthcoming halving.
"A similarly rapid turnaround and appreciation is equally anticipated on the way to higher levels leading into the halvening."
Chu believes that such bouts of volatility are not uncommon for Bitcoin. However, this time around, they were exacerbated by a string of negative macro events. On top of the coronavirus pandemic, global markets have been rattled by a new oil price war.
"Macro dominoes are falling to create a chain of negative sentiment, which is in turn triggering a sell-off of crypto."
On the bright side, Bitcoin is still up by more than eight percent in 2020 even after dropping 25 percent over the two brutal weeks.
Beware of the bulls
When it comes to Bitcoin, market sentiment can change very fast in either direction. Hence, Chu rightfully noted that the bulls could stage a rapid comeback prior to the much-anticipated reward cut in May that is expected to happen in 61 days.
To put things into perspective, it took the flagship coin only 12 weeks to skyrocket nearly 250 percent in the second quarter of 2019. At the end of 2017, when the cryptocurrency bubble reached its peak, BTC needed less than one crazy month to record the same level of growth.
As reported by U.Today, stock-to-flow model creator PlanB is still convinced that BTC could hit $100,000 during the next bull cycle.
Subscribe to U.Today on Twitter and get involved in all top daily crypto news, stories and price predictions!