Bitcoin’s price has declined by over 10% after briefly surpassing its all-time high of $69,000, largely driven by significant investor interest in BTC Spot Exchange-Traded Funds (ETFs).
Despite this volatility, Bitcoin rebounded to the $68,000 level, signaling renewed positive sentiment and sparking predictions of a major rally to new heights.
Key Narrative Could Propel Bitcoin to $240,000
Cryptocurrency analyst and trader Matthew Hyland shared an optimistic outlook for Bitcoin on the social media platform X, suggesting a key trend could lead to a bullish rally pushing BTC toward $240,000.
Hyland observed that in the past two years, Bitcoin has “disproved several narratives,” both positive and negative. These include the belief that BTC would neither fall below its previous cycle low nor reach its peak until after the halving event.
BTC is poised to exceed $240,000, challenging diminishing returns | Source: Matthew Hyland on X
However, Hyland pointed out that the only narrative Bitcoin has not yet refuted is “diminishing returns,” which remains almost entirely accurate. He acknowledged uncertainty regarding the impact of this trend but sees it as the “final boss” since it is the last narrative standing.
Hyland set a price target of $240,000 for the coming months, emphasizing that surpassing this figure would be necessary to overcome the diminishing returns narrative.
While Hyland expressed indifference as to whether Bitcoin reaches this level, he found it “intriguing” to watch whether the remaining trend would be challenged.
Another expert, known as Crypto Signals, echoed Hyland’s view, noting the interest in the concept of diminishing returns in relation to Bitcoin. Crypto Signals mentioned that every cycle typically results in a reduced percentage gain as the market matures, leading to more profound development and broader adoption.
Strategic Timing for Bitcoin Pre-Halving Rally
Crypto expert Rekt Capital identified a timeline for the potential conclusion of Bitcoin’s pre-halving rally. He noted that the pre-halving rally is nearing its end and likened it to similar movements in 2020 and 2016.
Rekt Capital observed that the pre-halving rally in 2020 occurred two weeks before the event, followed by a 20% retracement. In 2016, the rally took place 28 days before the halving and saw a correction of over 29% after reaching its peak.
Rekt Capital identified this period as a “historic danger zone” that could signal the end of the current pre-halving rally and lead to a pullback before the event.