Known as Rekt Capital, the seasoned cryptocurrency analyst and trader has warned investors that Bitcoin (BTC) could see further downward movements in the coming weeks. The analyst emphasized that the $60,000 range is a significant threshold for the largest cryptocurrency.
Second Danger Zone Warning After Block Reward Halving
Speaking to his subscribers on YouTube, Rekt Capital drew parallels between Bitcoin’s current correction and the price movements following the 2016 block reward halving. Notably, he pointed out that BTC underwent two correction movements during that period, one before and one after the halving.
Using historical examples, the analyst underlined the possibility of a new pullback in the weeks following Bitcoin’s last block reward halving. Comparing the current situation to the 2016 halving, the analyst emphasized that while some pullbacks occurred before the halving, most of the pullbacks and consolidation periods happened after the event.
Referring to the pullback before the 2016 block reward halving, Rekt Capital noted that the downward momentum continued after the halving. He named this period the “second danger zone after the block reward halving,” extending a few weeks beyond the event, and pointed out that a similar scenario could occur in the current market environment.
Based on past price movements, Rekt Capital warned that Bitcoin could remain in this danger zone until next month. With the recent block reward halving, the analyst added that it would take about three weeks or less for the second danger zone following the halving to fully emerge.
The $60,000 Threshold Is Quite Significant
According to Rekt Capital, the current support region around $60,000 is of great importance for Bitcoin. The analyst stressed the importance of Bitcoin staying above this support level over the next few weeks. He added that maintaining this critical support level during this period could lead to a consolidation phase and potentially increase optimism for a recovery.
At the time of writing, BTC is trading just below the $63,000 threshold at $62,954, showing a 2.24% decrease in the last 24 hours. Despite the recent negative trend, the current price indicates that Bitcoin continues to stay above the critical $60,000 support level.
