Well-known cryptocurrency analyst and trader Rekt Capital has revealed an intriguing finding about the bitcoin price trend in a recent analysis. His innovative forecast reveals that the crypto asset is mirroring historical price action that took place during an eight-year bull cycle. years ago.
Similar historical price trend in bitcoin
Rekt Capital stated that the way bitcoin is reiterating a past price trend from a cycle 8 years ago is surprising. Given the magnitude of the 2016 bull cycle, btc could be poised for significant growth in the coming months. During the 2016 bull cycle, btc witnessed a remarkable growth of almost 3000%, following the conclusion of the bitcoin Halving event.
Continuing, Rekt Capital drew attention to its previous post on bitcoin's post-Halving movement, which it called the Post-Halving Danger Zone. According to the analyst, the digital asset is currently trapped in this zone.
Furthermore, he noted that bitcoin has turned negative below the current minimum reaccumulation range, repeating the pattern that began in 2016. In 2016, the move below the reaccumulation range was approximately 17%. However, this divergence in 2024 will reduce by 6%.
Rekt Capital previously claimed that in 2016, about 21 days after the halving, bitcoin saw a long decline of -11% before turning higher.
Therefore, if there were downside volatility in this cycle around the bottom of the reaccumulation range, the 2016 data indicates that btc could turn bullish in the next 10 days, considering the release time.
Although the post-halving “danger zone” ends in the coming days, particularly within four days, Rekt Capital stated that data from 2016 demonstrates that there may be some negative volatility in the low range of $60,600 in the interim.
Pre-halving danger zone for btc
In particular, the expert also identified a danger zone before the event, where the pre-Halving setbacks always began. According to Rekt Capital, pre-Halving pullbacks in bitcoin have historically been seen between 14 and 28 days before the event, and this cycle has been no different so far..
He stated that bitcoin experienced its first pre-Halving retracement of -18% approximately 30 days before the Halving, while in 2016, the pre-Halving retracement began 28 days before the event, suggesting that btc could move in the same direction as in 2016. Because of this, Rekt Capital is confident that a potential danger zone could emerge after the Halving.
However, the pullback from the current all-time high has proven to be deeper and longer than previous pullbacks, which spanned several weeks. Consequently, the expert x.com/rektcapital/status/1786354863816733026″ target=”_blank” rel=”nofollow”>foretold a high probability that bitcoin prices have bottomed.
At the time of writing, bitcoin price was experiencing positive sentiment, rising 0.43% to $64,126 over the past day. Both its market capitalization and trading volume have increased by 0.50% and 24.43%, respectively, in the last 24 hours.
Featured image from iStock, chart from Tradingview.com
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