Bitcoin is undergoing a significant price correction, mirroring the broader cryptocurrency market. Over the past week, its value dropped by another 10%, hitting a low of $80,800 before a slight recovery. Currently, Bitcoin is trading 32.79% below its all-time high, with more investors selling than buying.
However, analyst Gert Van Lagen has identified an on-chain trend that suggests a bull market may be on the horizon. In a recent post, he pointed to Bitcoin’s historical behavior after halving events as a basis for optimism. Using a long-term chart that tracks Bitcoin’s price against its block height, Van Lagen noted a regression channel the asset has followed since 2009.
According to his analysis, after each halving, Bitcoin typically rises above the midline of this channel and then surges to a peak at the upper boundary, as seen in 2013, 2017, and 2021. Currently, Bitcoin is trading just below the midline, indicating potential for growth. Although it has faced rejection at this level three times, bouncing back each time from the 0.382 Fibonacci retracement line, Van Lagen expects it to eventually break through.
If that happens, he predicts Bitcoin could reach between $350,000 and $400,000, aligning with the upper boundary of the regression channel. He also clarifies that a true bear market, or “crypto winter,” typically begins only after Bitcoin hits this peak and then falls to test the lower trend line of the channel.
At the moment, Bitcoin is trading at $84,300, down 2.36% in the last day and 21.96% over the past month, reflecting ongoing market volatility and caution.
Frequently Asked Questions
Of course Here is a list of helpful and clear FAQs about a Bitcoin analyst predicting a 400000 price target
Beginner General Questions
1 What does a 400000 price target for Bitcoin mean
It means a financial analyst or expert has studied the market and believes that the price of one Bitcoin could eventually reach 400000
2 Why is this analyst so bullish on Bitcoin
Common reasons analysts give include increased adoption by large institutions its potential as a digital gold and store of value and its limited supply which can drive up price as demand grows
3 Is this price target guaranteed to happen
No it is not a guarantee It is a prediction based on current data and trends The cryptocurrency market is highly volatile and prices can be influenced by many unpredictable factors like regulations and global economics
4 What is Bitcoin in simple terms
Bitcoin is a digital currency that operates on a decentralized network called a blockchain It allows for peertopeer transactions without the need for a central bank or intermediary
5 How can I buy Bitcoin if I believe in this prediction
You can buy Bitcoin through regulated online platforms called cryptocurrency exchanges Youll need to create an account verify your identity and then you can purchase Bitcoin using traditional money
Advanced MarketFocused Questions
6 What specific factors is this analyst likely considering for such a high target
They are likely looking at factors like the potential approval of Bitcoin ETFs the upcoming halving events that reduce the supply of new Bitcoins and the growing fear of inflation making scarce assets like Bitcoin more attractive
7 What is the halving and how does it affect the price
The halving is a preprogrammed event in Bitcoins code that cuts the reward for mining new blocks in half approximately every four years This slows down the creation of new Bitcoin reducing the available supply If demand remains steady or increases this scarcity can push the price up
8 What are the biggest risks that could prevent Bitcoin from reaching 400000
Major risks include strict new government regulations that limit its use a major technological flaw or security breach being discovered a prolonged global economic recession reducing investment or the rise of a superior competing