Bitcoin might be in a downtrend, but fundamental analysis suggests it's in a healthy position. According to crypto analyst Kaleo, Bitcoin currently shows healthier dynamics than in the previous halving cycle. Despite Bitcoin struggling to stay above $54,000 and breaking above $57,000, it remains in a stronger position.
Kaleo shared his analysis on social media platform X, comparing current BTC price performance since the April 2024 halving to the May 2020 halving. Bitcoin is trading 19% below its all-time high of $69,434 but is holding up well compared to its 46% drop 141 days after the 2020 halving.
At the time of writing, Bitcoin is trading at $56,616. The lack of sustained bullish momentum since August has led many analysts to issue bearish predictions. However, Kaleo draws parallels to post-2020 halving sentiment, which was also negative but later proved overly pessimistic when Bitcoin rose above $1 trillion in market cap.
Kaleo suggests history might repeat itself, and Bitcoin could surpass market expectations. Institutional investment through Spot Bitcoin ETFs and improved regulatory clarity are positive factors. Analyst Rekt Capital also posits that a Bitcoin breakout could occur in October, with a market peak between 518 and 546 days post-halving.
