Key Points
- Senior analyst Markus Thielen predicts a 12% surge in Bitcoin’s price in April.
- Historical data and market sentiment support the potential for a Bitcoin rally.
Markus Thielen, a senior analyst at 10x Research, has provided his insights on the potential behavior of Bitcoin in the upcoming month as March nears its end.
In a recent social media post, Thielen mentioned that Bitcoin has seen a significant rally of seven consecutive months. He predicts it could continue this trajectory and rally 12% from the current price of $70,000 to $84,000 in April.
Bitcoin’s Performance in April: A Historical Analysis
Thielen pointed out that April could be an especially favorable month for Bitcoin. This is particularly due to the industry anticipating the Bitcoin halving 2024 to occur within the month.
The analyst referenced historical patterns, stating that the month of April tends to deliver positive returns for Bitcoin. In the last ten years, six have experienced significant price increases.
Historical data aligns with Bitcoin’s past performance following previous halving events. For instance, the crypto asset jumped over 30% in the first few months that followed the 2020 halving. This led to an all-time high of nearly $70,000 in 2021.
Thielen suggested that Bitcoin could follow the same pattern of previous performance to soar 12% in the coming month. With this historical pattern, the upcoming halving could be a significant catalyst for another bullish rally, potentially driving the price to new all-time highs.
Market Sentiment and Institutional Interest
In addition to the historical data, market sentiment could also be a factor that drives the rally. Several indicators point towards a positive outlook for Bitcoin.
The recent introduction of spot Bitcoin exchange-traded fund (ETF) in the United States has brought an influx of institutional investors into the industry. This has added legitimacy to Bitcoin as a store of value and a hedge against inflation.
Industry executives like Matthew Hougan, Bitwise’s chief investment officer, stated that investors could potentially invest as much as $1 trillion into Bitcoin through ETFs as they start to enter the crypto market.
Financial companies are also entering the market. Banks such as HSBC are entering the crypto market, bringing a range of real-world assets (RWA) onto blockchains. HSBC recently launched its tokenized gold token named HSBC Gold Token for retail investors.
The growing interest in Bitcoin futures and options markets indicates that institutional investors are increasingly looking to hedge their positions and take advantage of potential price movements.
While historical data and current market sentiments suggest that Bitcoin will likely rally after the halving event, some analysts have cautioned investors against relying solely on past performance to predict future price movements.
