Rekt Capital, a well-known cryptocurrency expert, has recently pointed out a striking resemblance between the current Bitcoin pre-halving retrace and the one that occurred in 2020. This observation is based on the historical data of Bitcoin’s price action before significant upsurges in value. The cryptocurrency, which is currently trading at over $70,000, has managed to bounce back from a recent downtrend, showcasing strong momentum.
Rekt Capital believes that the recent pullback in Bitcoin’s price may have come to an end, drawing parallels to the 2020 pre-halving retrace. However, given the unpredictable nature of the crypto market, the analyst remains cautiously optimistic about whether the recent price surge signifies the conclusion of the pre-halving retrace. If indeed this is the case, Bitcoin would have almost mirrored the correction that occurred before the 2020 halving.
Looking deeper into the correction analysis conducted by Rekt Capital, it is revealed that Bitcoin has been trading within a specific weekly range since experiencing an 18% pullback. This range is determined by the top wicks and candle bodies of the price action in 2021, indicating a significant level for Bitcoin to surpass in order to signal a bullish trend. Rekt Capital suggests that Bitcoin’s ability to hold above the $69,200 ‘range high’ could mark the end of the recent decline, potentially setting the stage for further price appreciation.
The impending 2024 Bitcoin halving event has become a focal point for many investors, with speculation about its potential impact on the cryptocurrency’s price. Despite facing resistance around the $73,000 mark, Bitcoin has managed to rebound to approximately $70,806, recording a daily increase of more than 5%. This positive price action is supported by a notable rise in both market capitalization and trading volume, signaling increased investor interest and confidence in the cryptocurrency.
One of the significant drivers of Bitcoin’s recent growth is attributed to the approval of spot BTC ETFs in January 2024. This approval has provided investors with a new avenue to gain exposure to Bitcoin’s value without directly owning the asset. As a result, Bitcoin has seen a surge in adoption by institutional investors and a substantial influx of capital, leading to a significant price appreciation from $46,000 to $73,000 since the ETFs were greenlit by the SEC.
Another factor contributing to Bitcoin’s price momentum is the anticipation surrounding the upcoming Bitcoin Halving event scheduled for April. Historically, such events have triggered notable price rallies in the cryptocurrency market, prompting investors to position themselves strategically to capitalize on potential gains post-halving. As a result, Bitcoin is poised for further growth as the market gears up for the halving event, which could potentially drive its price higher in the coming months.
Rekt Capital’s analysis provides valuable insights into the current state of Bitcoin’s price action and the potential implications of the pre-halving retrace. While there are uncertainties in the crypto market, the alignment of various factors such as historical trends, market dynamics, and upcoming events suggests a bullish outlook for Bitcoin in the near future. Investors are advised to conduct their own research and exercise caution when making investment decisions in the volatile cryptocurrency space.
