He bitcoin price has been in a downtrend since hitting a new all-time high of $73,000, ushering in a wave of speculation about the next direction of the crypto asset in the near term.
In recent days, bitcoin's recent drop has triggered an overall crypto market pullback. With the bitcoin Halving event fast approaching, many crypto analysts anticipate a further drop in the btc price in the near future.
bitcoin Prepares for 'Danger Zone' Ahead of Halving Event
Popular cryptocurrency trader and analyst Rekt Capital has shared a gloomy prediction for bitcoin with the crypto community on social media platform the “Danger Zone”.
The analyst's forecast came in light of btc seeing a notable drop in recent days. According to the expert, within two days bitcoin will formally enter the danger zone (orange).
This is the starting area of past pullbacks seen before the btc Halving, which is expected to take place in April. Prior to the halving, these pullbacks have consistently indicated intervals of substantial market corrections for the digital asset.
Rekt Capital further noted that pre-halving pullbacks have historically been seen in btc between 14 and 28 days before the event. bitcoin price saw a pullback of around 40% before the 2016 halving.
Meanwhile, in 2020, the crypto asset fell more than 40% before the event. Currently, we are less than 30 days away from this year's celebration. btc halved occurs; However, the price of the coin fell more than 11% last week, suggesting a further correction in the coming weeks.
The post said:
In 2 days, bitcoin will officially enter the “Danger Zone” (orange) where the historic pre-halving pullbacks began. Historically, bitcoin has done pre-halving pullbacks between 14 and 28 days before the halving. In 2020, this pullback had a depth of -20%, and in 2016, this pullback had a depth of -40%. Currently, btc is 30 days away from Halving and has fallen -11% this week.
It should be noted that the crypto analyst had previously indicated the deadline. btc It is expected to peak in this bull cycle. Rekt Capital believes that the asset will peak in 280-350 days. Specifically, this could happen around mid-December of this year, or mid-February of next year.
4 different halving phases
So far, the crypto analyst has highlighted several different phases for the next bitcoin Halving; These include the pre-halving rally, the final pre-halving pullback, the reaccumulation, and the parabolic uptrend.
According to Rekt Capital, there is usually a pre-halving rally approximately 60 days before the event takes place. For the final pullback prior to the halving, it typically develops between 14 and 28 days prior.
Furthermore, after the pre-Halving pullback, a reaccumulation period of several months follows. Lastly, the parabolic uptrend begins once bitcoin breaks out of the reaccumulation area.
Featured image from iStock, chart from Tradingview.com
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