With the price of Bitcoin experiencing a downward trend after hitting an all-time high of $73,000, there has been a lot of speculation surrounding the future direction of this popular cryptocurrency. As the Bitcoin Halving event approaches, many crypto analysts are predicting a further decline in BTC’s price in the near future. One such analyst, Rekt Capital, has shared a rather gloomy forecast for Bitcoin with the crypto community, highlighting what he refers to as the “Danger Zone.”
According to Rekt Capital, Bitcoin is set to enter the “Danger Zone” within the next two days. This zone has historically been the starting point for retracements seen before previous Bitcoin Halving events. These retracements have often signaled significant market corrections for the digital asset, with some retracements reaching as high as 40% before the halving took place.
Looking back at past Bitcoin Halving events, it is evident that the price of Bitcoin has experienced significant pullbacks in the weeks leading up to the event. In 2016, Bitcoin saw a 40% decline before the halving, while in 2020, the crypto asset dropped by over 40% as well. With less than 30 days to go before this year’s halving, Bitcoin has already seen an 11% decrease in price, indicating a possible further correction in the coming weeks.
Rekt Capital has also predicted a timeframe for when Bitcoin is expected to reach its peak in this bull cycle. The analyst believes that Bitcoin will likely peak within 280-350 days, possibly around mid-December of this year or in mid-February of next year. The analyst has outlined different phases for the upcoming Bitcoin Halving, including the Pre-Halving Rally, Final Pre-Halving Retrace, Re-accumulation, and Parabolic Uptrend.
According to Rekt Capital, the pre-halving rally typically occurs around 60 days before the halving event, while the final pre-halving retrace usually takes place 14 to 28 days ahead. Following the pre-halving pullback, there is a multi-month re-accumulation period before the parabolic uptrend begins once Bitcoin exits the re-accumulation phase.
It is essential to note that the information provided in this article is for educational purposes only. The opinions expressed by analysts do not represent the views of any specific entity, and investing in cryptocurrencies carries inherent risks. It is advisable to conduct thorough research before making any investment decisions and to use the information provided here at your own discretion.
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