According to analysts, Bitcoin investors face a tough test in the near future

With the Bitcoin (BTC) halving approaching, investors are feeling the excitement building. The halving increases Bitcoin’s scarcity and has historically resulted in a new strong uptrend in the base price. Analyst Decentrader believes this time will be no different, but also expects a challenging time for investors.

Classic BTC half year

In a new market update, Decentrader has predicted that we are in for a “classic half-year” where investors will first be “tested” before new record highs are reached later in the year.

According to the analyst, there is still room for Bitcoin to fall further in the coming month. He expects the price to begin a new uptrend about six weeks before the halving, which will take place sometime in mid-April.

With the Bitcoin halving, the rewards for miners are halved. Currently they earn 6.25 BTC by adding a new transaction block to the blockchain, but after the halving it will be 3.125 BTC.

The picture drawn by Decentrader suggests that the price will rise significantly from mid-March. Based on historical data, he expects the halving hype to flourish from then on.

“That would mean Bitcoin has about 30 days to go through its correction phase before finding the expected FOMO demand,” the analyst wrote.

Impact of Bitcoin Halving on Price

Decentrader believes that the halving is a so-called halving “sell the news” event will be. This would mean that many investors dump their Bitcoins into the market as soon as the long-awaited halving occurs, resulting in a bearish trend.

Ultimately, however, the halving will open the doors to a new bull market, according to Decentrader. He points out that Bitcoin has historically taken 220 to 240 days to break through its all-time high, and he expects this time to be no exception.

That would mean Bitcoin will break $69,000 sometime by the end of this year.

It is important to note that this is just the opinion of a single analyst based on past price performance. This cycle is by no means guaranteed to be similar to previous cycles.

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