Rekt Capital, a cryptocurrency expert and enthusiast, has identified a similar pattern between bitcoin's recent pre-halving pullback and the one that took place in 2020 before the crypto asset saw a rise to its previous all-time high.
bitcoin pullback is almost identical to the 2020 pre-halving pullback
bitcoin, the largest cryptocurrency asset, is currently showing momentum, rising over $70,000 and recovering from a recent downward trend. Following the recovery, Rekt Capital believes the pullback could be over, citing a similarity to the 2020 halving. remember.
Given the uncertainty of the cryptocurrency market, the analyst is unsure if the recent surge marks the end of the pre-halving pullback. However, if that is the case, then bitcoin would have almost matched the pre-mid-2020 correction.
According to the analyst, the digital asset has registered a decline of more than 18% in this cycle. Meanwhile, in the 2020 cycle, it retraced more than 19%, suggesting that the asset's potential mirrors the 2020 move in this cycle.
Other diving The correction made by the analyst reveals that bitcoin has been trapped within the weekly range (black-black) since retracing more than 18%. Both the profit-absorbing 2021 peak and the candle-body 2021 peak combine to create the weekly range that Rekt Capital has indicated.
Therefore, he claims that btc reclaiming the 'max range' of $69,200 as support, which has already been met, could signal the conclusion of the recent decline. Furthermore, this shows that bitcoin is poised to break above its weekly range and soar higher.
As bitcoin's 2024 halving approaches, the cryptocurrency is having a difficult time reclaiming its most recent high of $73,000. However, there are rumors that today's rise could mean that the previous halving drop is coming to an end.
Catalysts considered for btc strength in this cycle
At the time of writing this article, btc has recovered to around $70,806, indicating a daily increase of more than 5%. Its market capitalization and trading volume are also showing strength, increasing by 5.49% and 47.82%, respectively, in the past day.
It is believed that one of the main drivers of bitcoin's growth in this cycle was the approval of btc Spot ETF in January 2024. With the acceptance of the product, investors now have a convenient way to benefit from the value of bitcoin without owning any of it.
Since then, the crypto asset has witnessed increased adoption by industry leaders and massive capital inflow, which has also boosted its price. The price of btc has risen from $46,000 to a high of $73,000 since the ETFs were approved by the US Securities and Exchange Commission (SEC).
Another catalyst that is considered to have impacted the price of the coin is the anticipation surrounding the upcoming bitcoin halving that will occur in April. In the past, these types of events have caused notable price increases. Because of this, investors will focus their attention on btc to position themselves for significant gains after the halving event.
Featured image from iStock, chart from Tradingview.com
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