Bitcoin Heads for Pre-Halving Retraction, Crypto Analyst Warns

With the cryptocurrency market falling in recent days, a notable voice, Rekt Capital, stands out for its in-depth analysis and accurate predictions. Working on platform X, the analyst brought an interesting perspective to the Bitcoin market, indicating that, despite the current euphoria, a retracement phase is approaching, maintaining the pattern observed in previous pre-halving cycles. The presence of newly launched ETFs, although it has significantly boosted the market, is not seen as a factor capable of changing the expected correction trend.

In its analyses, Rekt Capital highlights that Bitcoin is on the verge of entering the so-called “Danger Zone”, a period that precedes the halving and is characterized by price corrections. Based on historical data, the analyst points out that Bitcoin tends to experience significant pullbacks — 14 to 28 days before the halving event.

This prediction is reinforced by past events, such as the 2020 halving, when Bitcoin suffered a 20% drop in the days leading up to the event, and 2016, marked by a 40% correction after an initial recovery period.

#BTC

“This cycle is different because of the ETF”

Sure but it looks like that doesn’t protect price from a Pre-Halving Retrace which tends to happen in every cycle$BTC #Crypto #Bitcoin pic.twitter.com/mOe3oSmlBy

— Rekt Capital (@rektcapital) March 16, 2024

With 31 days left until the next halving, the scenario described by Rekt Capital is already beginning to take shape, with Bitcoin falling 11% from its all-time high (ATH) of US$73,794 to approximately US$65,000, according to data from TradingView. This movement signals the inherent volatility of the cryptocurrency market and reiterates the importance of technical analysis in anticipating trends. At the time of publication, the price of BTC was quoted at US$67,305.10 with a drop of 1% in the last 24 hours.

The analyst continues with a graphical analysis, suggesting that after the pullback, Bitcoin is likely to enter a post-halving reaccumulation phase, setting the stage for a parabolic rise. At the time of analysis, Bitcoin’s price was $65,469, reflecting pre-halving tension in a generally stable market.

The unique situation presented by ETFs and Bitcoin’s new ATH before the halving highlight the uniqueness of the current cycle, a phenomenon that adds an extra layer of complexity to traditional market behavior. This is a fascinating reminder that even with new elements at play, historical patterns continue to offer valuable insights for investors.

Disclaimer:

The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing in or trading cryptocurrencies carries a risk of financial loss.