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In a significant revelation, historical trends suggest that Bitcoin might be on the verge of another major rally, reminiscent of its past Q4 surges.
In a tweet, Ali Martinez, a crypto analyst, pointed out that Bitcoin gained 61% in Q4 of 2016 and 171% in 2020.
Ali pointed out that 2024's price trajectory appears to mirror the patterns from both years, asking if history could be repeating itself. If this is so, BTC could stage an epic rally in the final months of the year.
Tomiwabold OlajideBitcoin increased its weekly gains to nearly 10%, extending a rally in the past week bolstered by a jumbo rate cut by the U.S. Federal Reserve. BTC reached a high of $64,712 in today's trading session, following a six-day climb. At the time of writing, BTC was up 1.28% in the last 24 hours to $63,561.
Post-halving history to repeat?
Bitcoin completed its fourth "halving" in April this year, reducing the rewards earned by miners to 3.125 Bitcoins from 6.25 BTC.
The Bitcoin price increased by about 93x, 30x and 8x from its halving-day price to its cycle top, making it a bullish event, particularly following the 2012, 2016 and 2020 halvings.
BTC experienced a mid-cycle peak in 2016 and 2020, followed by months of sideways trading before breaking higher in the latter months of the year.
BTC fell more than 40% from its June 2016 intermediate cycle high before surging in December of the same year. In 2020, BTC fell around 21% from its August peak before reaching new highs in late October 2020.
According to market observers, 2024's corrective phase mirrors the price action of Bitcoin's previous two halving years. This observation prompts many to wonder if history will repeat itself, with Bitcoin staging an epic rally in the latter months of the year. The answer remains unknown, given that past success may not guarantee future results.
Alex Dovbnya
Dan Burgin
U.Today Editorial Team
Vladislav Sopov