Cryptocurrency analyst and trader Rekt Capital recently made a fascinating discovery regarding Bitcoin’s price trend. He pointed out that the current price action of Bitcoin closely resembles that of a bull cycle that occurred eight years ago. This revelation has sparked interest among investors and analysts, as it suggests that Bitcoin may be on the verge of experiencing significant growth in the coming months.
Rekt Capital highlighted a pattern that he refers to as the “Post-Halving Danger Zone.” According to his analysis, Bitcoin is currently within this zone, having dropped below the Re-Accumulation Range Low. This mirrors a similar pattern from 2016 when Bitcoin experienced a 17% decline below the re-accumulation range. However, the current divergence is only 6%, indicating a potential turnaround in the near future.
In 2016, Bitcoin saw a decline of -11% around 21 days after the Halving event before rebounding. Rekt Capital predicts a similar trend in the current cycle, suggesting that Bitcoin could see an upward movement in the next 10 days. Despite the impending end of the Post-Halving Danger Zone, there may still be some negative volatility in the short term, particularly around the $60,600 Range Low.
Rekt Capital also highlighted a Danger Zone before the Halving event, where previous Pre-Halving retraces have historically started. He noted that Bitcoin typically experiences retracements between 14 and 28 days before the event, a pattern that has repeated in the current cycle. This suggests that Bitcoin could follow a similar trajectory as that of 2016, leading to a potential danger zone post-Halving.
Despite the uncertainties surrounding Bitcoin’s price action, Rekt Capital remains optimistic about the current market sentiment. He believes that the recent retracement from the all-time high may have reached a bottom, indicating a potential upward movement in the near future. At the time of writing, Bitcoin’s price has shown a positive sentiment, rising by 0.43% to $64,126 in the past day.
The mirroring of Bitcoin’s price action from historical cycles offers valuable insights for investors and analysts. While the market remains volatile, Rekt Capital’s analysis provides a compelling case for a potential turnaround in Bitcoin’s price trend. As always, it is essential for investors to conduct their own research and make informed decisions when it comes to cryptocurrency investments.
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