Bitcoin has seen a remarkable recovery, reaching the $70,000 threshold following recent momentum in the market. As the much-anticipated Bitcoin Halving event approaches, cryptocurrency analyst Rekt Capital provides insights into the three distinct stages of the event for investors to consider.
Rekt Capital’s analysis focuses on the movement of Bitcoin before and after the halving event, which is expected to occur this month. The first stage highlighted is the pre-halving retrace, which has already taken place. This phase saw Bitcoin experience an 18% pullback, considerably lower than the retracement percentages seen in 2016 and 2020.
Following the pre-halving retrace, Rekt Capital notes that it paves the way for the re-accumulation phase. This period, occurring a few weeks ahead of the halving, is characterized by sideways movement and lasts up to 150 days. It is crucial for investors to exercise patience during this phase as significant returns may not be immediately apparent, leading many to lose confidence.
The final stage identified by Rekt Capital is the parabolic uptrend, which begins when Bitcoin breaks out from the re-accumulation range. During this phase, Bitcoin’s price tends to grow rapidly, entering a parabolic surge. While historically lasting around a year, the accelerated cycle in the current market may shorten this period within the current bull market cycle.
Bitcoin has shown strength in revisiting its all-time high of $73,000, with gains exceeding 6% in recent days. Despite a brief dip to $67,000, Bitcoin is now trading around $70,854, reflecting a 6% increase in the past week. Market capitalization is up by 1%, while trading volume has decreased by over 21% in the last day.
As the Bitcoin market continues to evolve, the upcoming halving event provides an opportunity for investors to analyze market trends and plan their strategies accordingly. Rekt Capital’s insights offer valuable perspectives on navigating the three stages of the halving process, emphasizing the importance of patience and diligence in achieving profitable outcomes in the volatile cryptocurrency market.
With Bitcoin poised for potential gains in the months ahead, investors are advised to conduct thorough research and exercise caution when making investment decisions. The cryptocurrency market, while promising, carries inherent risks that should be carefully considered before committing to any financial transactions.
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