Bitcoin (BTC) has continued to signal short-term weakness as the spot ETF frenzy gradually dwindles. According to on-chain data, more than 468k non-zero Bitcoin wallets have vanished in the past two weeks alone. Nevertheless, institutional demand for Bitcoin and other digital assets has continued growing exponentially worldwide.
Furthermore, the majority of global central banks are struggling with poor monetary policies led by the United States Federal Reserve, which recently reported that the national debt, which is more than $34 trillion, is unsustainable. As a result, Bitcoin’s volatility is expected to spike in the coming months amid the upcoming fourth halving, which will increase the mining difficulty and lower the market inflation.
Analysts Take on Bitcoin Price Action in the Near Term
According to a popular veteran stock and crypto trader, Peter Brandt, Bitcoin price is on the cusp of a historical upsurge based on historical performance. Notably, Brandt expects heavy liquidation for the Bitcoin short traders in the coming weeks as Bitcoin suddenly pushes to higher highs in preparation for the pre-halving rally. Furthermore, Brandt plotted a derivative of the Bump Hump Lump Dump (BHLD) analog pattern in the past few months, similar to the 2017/2018 bull cycle.
A similar stance has been issued by a popular crypto analyst based in the Netherlands, Michaël van de Poppe, who expects Bitcoin price to drop towards the support level around $42k before an uproar towards $50k in the coming months.