Bitcoin’s upcoming fourth halving event has sparked a debate among analysts on the potential directions that the cryptocurrency’s price could take. One notable analyst, Rekt Capital, has weighed in on the issue and drawn comparisons to past trends. In this article, we will delve into Rekt Capital’s analysis and present a fresh perspective on what could unfold in the aftermath of the halving, taking into consideration historical patterns and expert insights.
Rekt Capital’s analysis revolves around the idea of a breakout from the macro downtrend that Bitcoin has recently experienced. Drawing parallels to the 2015-2016 period, the analyst highlights the reaccumulation range that formed before the previous halving event. According to Rekt Capital, a similar trend has resurfaced in the current 2023-2024 period, indicating potential upside for Bitcoin.
Possible Retracement and Last Opportunity
One aspect that Rekt Capital pointed out is the possibility of a retracement around the time of the halving. This scenario suggests that a break in the reaccumulation range could trigger a temporary retreat in Bitcoin’s price. Drawing an analogy to the 2015-2016 cycle, where a resistance level rejection led to a retreat, Rekt Capital suggests that historical data supports the occurrence of such retracements. However, it is crucial to note that these retracements tend to be brief.
Rekt Capital, however, emphasizes that this retracement presents the “last opportunity” before a price increase for Bitcoin occurs. The analyst predicts that once the retracement is over, the $46,000 price level will become a new support level, propelling Bitcoin towards its old all-time high. Moreover, Rekt Capital anticipates that Bitcoin’s price could surpass its previous all-time high, indicating a potential path towards a new record.
In addition to Rekt Capital’s insights, Samson Mow, the CEO of Pixelmatic, highlights several factors that contribute to the value of Bitcoin. Mow highlights scarcity, utility, and the failure of fiat currencies as key drivers of Bitcoin’s value. Contrary to popular belief, Mow argues that BTC Spot Exchange-Traded Funds (ETFs) do not significantly impact the token’s value.
Mow’s statement was a response to CNBC’s Jim Cramer, who suggested that the approval of BTC ETFs led to a decline in Bitcoin’s price. Mow dismisses Cramer’s claims, pointing out that many institutional investors, such as BlackRock and Fidelity, have shown significant interest in Bitcoin, as evidenced by the net inflow of investments. This suggests that BTC’s value is not solely dependent on ETFs, but rather on its scarcity, utility, and the erosion of trust in traditional fiat currencies.
As Bitcoin’s fourth halving event approaches, analysts like Rekt Capital provide valuable insights into the potential price movements of the cryptocurrency. Based on historical patterns and a breakout from the macro downtrend, there is optimism for Bitcoin’s future. While a retracement may occur around the halving, it presents an opportunity for investors before a price increase takes place. Additionally, factors like scarcity, utility, and the failure of fiat currencies contribute to Bitcoin’s overall value. It is important to approach cryptocurrency investments with caution and conduct thorough research before making any decisions, as investing always carries risks.
Disclaimer: This article is intended for educational purposes only and does not reflect the opinions of NewsBTC. Readers are advised to conduct their own research and make informed investment decisions. Investing in cryptocurrencies carries risks, and individuals should use the information provided here at their own discretion.
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