- Changpeng Zhao tweeted that BTC could surge in the next few months.
- He cited the fact that Bitcoin has been higher in all the past three halvings.
Bitcoin price has pulled back this week as the recent rally took a breather. After soaring to $31,000 in March, BTC price has retreated to below $29,000. Similarly, Litecoin, Solana, AGIX, and Fetch.ai have all slipped in the past few days.
Why Bitcoin price pulled back
There are several reasons why Bitcoin price dropped this week, dragging other altcoins down with it. First, this decline happened as Bitcoin lacked buyers to push it above the key resistance point at $31,000.
This is not new. Historically, BTC and other altcoins tend to struggle after crossing an important level of resistance. In this case, Bitcoin just crossed the important resistance point at $30,000, which was the highest point since June last year.
Further, Bitcoin pulled back because of the relatively strong results by American banks like Western Digital Alliance and JP Morgan. These results imply that the banking crisis is slowly ending without any major casualties. This is a negative fact for Bitcoin, which was doing well when bank stocks were retreating.
Meanwhile, BTC price has dropped because of the strong US dollar. The dollar index plunged to a low of $100 last week and has recovered modestly in the past few days to trade at $101.7. In most cases, Bitcoin and other cryptocurrencies tend to underperform when the US dollar is rising.
Changpeng Zhao believes that BTC price will surge
Some analysts and market players believe that cryptocurrency prices will bounce back in the long term. They argue that the Federal Reserve will ultimately start pivoting since inflation is falling and risks for a major recession are rising. The yield curve has inverted to the lowest point in years, which is usually a sign of a recession.
One of these analysts who supported the view that BTC price will rise is Changpeng Zhao, the founder and CEO of Binance. In a tweet, he argued that the upcoming Bitcoin halving will have a positive impact on Bitcoin.
Precisely, he noted that Bitcoin was trading at $12 when the first halving happened in 2012 followed by $658 and $8,800 in the 2012 and 2020 halving events. Therefore, he argued that BTC could surge towards the next halving in 2024.
If this happens, it means that other altcoins like Litecoin, Ethereum, and Solana will follow suit because of the close correlation with Bitcoin.
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