Bitcoin has recently shown a remarkable recovery, now hovering around the $70,000 threshold. This recovery has sparked optimism among crypto enthusiasts, especially leading up to the much-anticipated Bitcoin Halving event. Rekt Capital, a well-known cryptocurrency analyst, has provided valuable insights into three key stages of the event for investors to watch out for.
According to Rekt Capital’s analysis, the first stage to observe is the pre-halving retrace, which has already taken place. During this phase, Bitcoin experienced an 18% pullback, a significant difference compared to previous halving events. This retrace period was seen as the last opportunity for investors to make a deal before the halving event.
Following the pre-halving retrace, Rekt Capital confirmed the development of the re-accumulation range. This range typically occurs a few weeks before the halving event and lasts for several weeks or even up to five months. It is important to note that patience is key during this phase, as sideways movement is expected, leading to some investors becoming frustrated and losing confidence in their investments.
The final stage highlighted by Rekt Capital is the parabolic uptrend phase, which begins when Bitcoin breaks out from the re-accumulation range. During this stage, the price of BTC tends to grow rapidly and enter a parabolic upsurge. Historically, this phase has lasted around a year or slightly more, but with the current accelerated cycle, it could be shortened within this bull market cycle.
Bitcoin has shown strength in revisiting its current all-time high of $73,000, with gains of over 6% in the past few days. Despite a slight pullback to around $70,000 after a drop to $67,000, Bitcoin’s trading volume has decreased by more than 21% over the past day. However, its market capitalization has increased by 1%, indicating the potential for further gains in the coming months.
The analysis provided by Rekt Capital sheds light on the potential growth of Bitcoin in the lead-up to the halving event. By carefully observing the pre-halving retrace, re-accumulation range, and parabolic uptrend phases, investors can make informed decisions regarding their investments in Bitcoin. It is crucial to conduct thorough research and remain patient during periods of sideways movement to maximize returns and avoid getting shaken out of the market prematurely.