Bitcoin Block Channel Projects $400,000 Price Target

Bitcoin Block Channel Projects $400,000 Price Target – Insights

The Bitcoin market is currently undergoing a significant price correction that aligns with trends in the wider cryptocurrency market. Over the last week, Bitcoin experienced another 10% drop, trading as low as $80,800 before bouncing back slightly. At present, Bitcoin’s value is 32.79% below its all-time high, with most investors opting for distribution rather than accumulation. However, analyst Gert Van Lagen has highlighted an on-chain trend that suggests a potential revival of the bull market.

Key Takeaways

Bitcoin is undergoing a price correction, down 32.79% from its all-time high.
Analyst Gert Van Lagen predicts a possible recovery, forecasting a price target between $350,000 and $400,000 based on historical patterns.
Bitcoin generally follows a specific post-halving pattern, which may indicate future price growth.
Despite current market fears, a true bear market will only commence after Bitcoin establishes a market peak.

Bitcoin

Historical Price Patterns Post-Halving Suggest Bullish Potential

In a post on X dated November 21, Gert Van Lagen presented a positive price prediction for Bitcoin based on historical data following previous halvings. The respected analyst explained this forecast using a long-term logarithmic chart depicting Bitcoin’s price against Bitcoin block height, showcasing a regression channel that the cryptocurrency has adhered to since 2009.

He noted that Bitcoin typically follows a consistent pattern after each halving, which begins with a surge above the midline of the regression channel. This trend is usually followed by an acceleration towards a blow-off top (represented by orange spikes) at the channel’s upper boundary, a pattern observed in 2013, 2017, and 2021.

Bitcoin
Source: @GertvanLagen on X

Currently, Bitcoin is trading just below the midline of this regression channel, indicating that there is significant potential for price gains. Van Lagen has observed some unusual price behavior, noting that Bitcoin has faced rejection at the midline on three occasions, each time resulting in a bounce off the 0.382 Fibonacci retracement line. Despite this, he anticipates that Bitcoin will uphold its 15-year historical trend and eventually break above the midline resistance. If this occurs, Van Lagen forecasts that Bitcoin could reach between $350,000 and $400,000, a range that corresponds with the upper boundary of the regression channel.

Understanding the True Bearish Market

Amid current fears of a bearish market, Van Lagen clarifies that the much-feared crypto winter only begins after Bitcoin hits its upper target, establishing a market peak. His analysis suggests that Bitcoin will subsequently drop from this peak to retest the 210,000 block simple moving average (SMA), which represents the lower trend line of the regression channel.

As of now, Bitcoin is valued at $84,300, after experiencing a price decline of 2.36% over the last day. In the past month, Bitcoin has faced a price devaluation of 21.96%, highlighting the volatility and caution prevailing in the market.

Bitcoin
BTC trading at $84,223 on the daily chart | Source: BTCUSDT chart on Tradingview.com