As per Rekt Capital, a cryptocurrency expert and enthusiast, the recent Bitcoin pre-halving retrace bears a resemblance to the one that occurred in 2020 before the crypto asset surged to its previous all-time high. Bitcoin, being the largest cryptocurrency asset, is currently showcasing momentum as it climbs over $70,000, recovering from a recent downward trend. Rekt Capital points out that the pullback may have concluded, drawing parallels with the 2020 pre-halving retrace.
Despite the positivity surrounding the recent upsurge, there is uncertainty in the crypto market. Rekt Capital is cautious in confirming whether the pre-halving retrace has indeed ended. However, if that is the case, Bitcoin would have nearly replicated the pre-halving correction from 2020. The digital asset has experienced a pullback of over 18% in this cycle, similar to the retracement of over 19% in the 2020 cycle, hinting at a potential correlation between the two movements.
A deeper analysis of the correction by Rekt Capital reveals that Bitcoin has been confined within the Weekly range (black-black) since retracing by over 18%. The peaks of 2021, both upside-wicking and candle-bodied, form the weekly range highlighted by the analyst. Rekt Capital suggests that reclaiming the $69,200 ‘range high’ as support, which has already transpired, could signal the conclusion of the recent downturn. This also implies that Bitcoin is primed to break above its weekly range and surge to higher levels.
The approaching 2024 Bitcoin halving is a significant factor influencing the cryptocurrency’s current performance. Bitcoin is facing challenges in reclaiming its recent peak of $73,000 amidst rumors that the uptrend could signify the end of the pre-halving decline. At the time of reporting, BTC has bounced back to approximately $70,806, reflecting a daily increase exceeding 5%. Its market cap and trading volume have also shown strength, rising by 5.49% and 47.82%, respectively, in the past day.
The approval of spot BTC ETFs in January 2024 is believed to have been one of the main drivers of Bitcoin’s growth this cycle, offering investors a convenient avenue to profit from Bitcoin’s value without direct ownership. Subsequently, the crypto asset has seen increased adoption from industry leaders and a substantial inflow of capital, boosting its price. Following the approval by the US SEC, the BTC price surged from $46,000 to a peak of $73,000.
Another catalyst influencing the coin’s price is the anticipation surrounding the upcoming Bitcoin Halving slated for April. Historically, such events have triggered notable price increases, prompting investors to align their positions in BTC to capitalize on potential gains post-halving. The narrative surrounding the halving event adds to the bullish sentiment in the Bitcoin market, driving further interest and investment in the digital asset.
Ultimately, while Rekt Capital’s analysis offers valuable insights into the Bitcoin pre-halving retrace patterns and potential price movements, it is essential for investors to conduct their own research and due diligence before making any investment decisions in the volatile cryptocurrency market. The unpredictability of the market and the risks associated with investing necessitate a cautious and informed approach to navigating the crypto landscape.
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