Bitcoin decline is similar to the start of the 2016 bull run: Peter Brandt

Bitcoin’s decline since the April 2024 halving is starting to look similar to market movements ahead of the 2016 bull run, according to veteran trader Peter Brandt. 

In a post on X on Aug. 5, the analyst said that the “BTC decline since halving is now similar to that of the 2015-2017 halving bull market cycle.”

Brandt compared the depth of the market corrections since the halving dates noting they were very similar.

In 2016, the Bitcoin ( BTC ) halving was on July 9 and the asset price on that day was $650. The markets retreated during that cycle to a subsequent low of $474 in a 27% post-halving decline within a month before rocketing to a cycle high of $20,000 in December 2017.

Similarly, the recent Bitcoin slump below $50,000 now represents a 26% decline from the post- halving price of $64,962.

However, some analysts warn Bitcoin could drop lower .

On Aug. 5, BTC prices dumped double figures in a fall to $49,221, according to CoinGecko.

It has lost 20% since tapping $70,000 in late July but has already shown signs of recovery reclaiming $56,000 during early trading in Asia on Aug. 6.

On Aug. 5, ITC Crypto founder Benjamin Cowen said in a post on X that the pattern had mirrored that of 2019 when markets surged for the first half of the year, then dumped in a massive correction for the second half.

Tim Kravchunovsky, founder and CEO of the decentralized telecommunications network Chirp, commented in a note to Cointelegraph that we could see crypto assets recover much more quickly than other risk assets as we did in 2020.

The massive selloff was not a crypto-specific issue as “macroeconomic factors are in the driving seat,” he said.

“Over the coming hours and days, we may well see a decoupling of crypto from traditional stocks, similar to what we saw in 2020.”

"Back then, crypto staged a much faster and more pronounced recovery from the pandemic-driven collapse than traditional stock markets, and we may well see something similar this time,” he added.