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Renowned cryptocurrency analyst Rekt Capital stated that despite the significant impact of ETFs, the current bull market cycle will retain the fundamental trend pattern of Bitcoin before the halving. The analyst acknowledged the role of newly launched ETFs in the development of the Bitcoin market. However, he believes that a pullback will occur before the halving, similar to previous bull market cycles.
In a recent post, Rekt Capital predicted that Bitcoin is approaching a "danger zone" days before the halving. According to him, the danger zone marks the onset of pullbacks before the halving event. He explained using historical data that Bitcoin experienced pullbacks of 20% in the days leading up to the halving event 14 to 28 days prior.
To further illustrate his observations, the prominent analyst noted that in the days leading up to the Bitcoin halving in 2020, the flagship cryptocurrency retraced by 20%. Similarly, before the halving event in 2016, Bitcoin retraced by 40% after the initial rebound.
As of the time of Rekt Capital's post, there were 31 days until the Bitcoin halving event, and the leading cryptocurrency had retraced by 11%. According to TradingView data, BTC had dropped from its recent all-time high (ATH) of $73,794 to around $65,000.
The renowned analyst supported his predictions with chart analysis, indicating the possibility of further price declines during the re-accumulation phase after the halving. He also revealed that post-halving accumulation would prepare the top-tier cryptocurrencies for a parabolic uptrend.
At the time of writing, Bitcoin's trading price was $65,469 amid a generally subdued market. The impact of newly launched ETFs on the current bull market is significant, especially in propelling BTC to new ATHs before the halving event. This is a scenario that the cryptocurrency market has experienced only during the current bull market cycle. |
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Post time 27-3-2024 15:43:33