Bitcoin Pre-Halving Retreat: Analyst Insights

Rekt Capital, a well-known cryptocurrency analyst on X, predicts that despite the ETF’s considerable influence, the current bull cycle will maintain the fundamental trend pattern that preceded Bitcoin’s halving. The analyst said that ETFs have impacted how the Bitcoin market has changed. But like in the prior bull cycles, he thinks there will be a pre-halving retracement.

In a recent post, Rekt Capital forecasted that Bitcoin is on the brink of entering what he calls the “Danger Zone.” He explained that this zone marks the onset of pre-halving retracement, citing historical data indicating that Bitcoin’s typically undergoes such retracements 14 to 28 days prior to the halving event.

In elaborating on his observation, the esteemed analyst illustrated that Bitcoin experienced a 20% retracement in the days preceding the 2020 Bitcoin halving. Likewise, prior to the 2016 halving event, the primary cryptocurrency underwent a 40% pullback following an initial rally.

Rekt Capital’s Bitcoin Halving Projections

At the moment Rekt Capital made their post, the Bitcoin halving event was just 31 days on the horizon, with the leading cryptocurrency retracing by 11%. Bitcoin had declined from its recent peak of $73,794 to approximately $65,000, as per TradingView data.

However, The renowned analyst bolstered his forecast with a thorough chart analysis indicating potential further price declines for Bitcoin during a post-halving re-accumulation phase. Additionally, he unveiled that this accumulation phase following the halving event would prime the leading cryptocurrency for a subsequent parabolic surge.

At the moment of writing, Bitcoin was exchanging hands at $65,469 amidst a broader market downturn. The introduction of newly launched ETFs has wielded a substantial influence on the ongoing bull market, notably propelling BTC to achieve a new all-time high prior to the halving event. This marks a unique scenario within the current bull cycle that the cryptocurrency market hasn’t previously encountered.

Related Reading | Rekt Capital believes Bitcoin’s pre-halving behavior will happen despite ETF impact.

The author’s views are for reference only and shall not constitute any investment advice. Please ensure you fully understand and assess the products and associated risks before purchasing.

Comments (No)

Leave a Reply