Nidhi Kolhapur
Cryptocurrency analyst Rekt Capital recently opened up about the possibility of a Bitcoin retracement and the pre-halving dynamics in the crypto market. In his latest analysis, Rekt Capital discussed historical data and trends, shedding light on potential scenarios.
Rekt Capital pointed out that historically, in the months leading up to a Bitcoin halving event, there tends to be increased volatility. This period, known as the “pre-halving” phase, often sees upward and downward price movements.
The analyst highlighted that a retracement during this time is not uncommon. Drawing comparisons to previous Bitcoin halving cycles in 2015 and 2019, Rekt Capital indicated that retracements of around 24% to 38% were observed. He noted that currently, there is a potential for a 30% retracement in Bitcoin’s price. However, the critical aspect is how the retracement depth may change over time.
He said, “Make the most of any Pre-Halving downside So that you can fully enjoy the Post-Halving upside.”
The analysis stressed that the retracement percentages tend to decrease as time progresses. For example, if a retracement is observed in December 2023, it might be around 26%, but by February 2024, it could decrease to 19%.
The analyst highlighted that the critical factor to watch is the lower high resistance level. Bitcoin often experiences significant volatility around this level, with the price sometimes surpassing it briefly. Maintaining support above certain moving averages during the pre-halving period is crucial.
Rekt Capital stressed that the upcoming 140-day period is crucial for the Bitcoin market. Historically speaking, the potential for a crash or retracement is higher during this time. However, the analyst also noted that this period represents the last chance for a significant retracement before the market enters a post-halving rally.
