According to an analyst, Bitcoin could be just a few days away from entering a danger zone before halving, a period historically marked by a drop in its price. Crypto analyst Rekt Capital stated in a March 17 post that within two days, Bitcoin would officially enter the danger zone where historical pre-halving pullbacks began.
What’s Happening on the Bitcoin Front?
Rekt Capital explained that historically, Bitcoin’s price has fallen within 14 to 28 days before a halving event. Bitcoin dropped by 40% during the 2016 halving and by 20% in the 2020 halving.
In January, Rekt Capital predicted a pre-halving rally would occur about 60 days before the event, followed by a pre-halving pullback one to three weeks before the halving. Bitcoin’s rise in mid-February and surpassing the previous cycle’s all-time high of $68,990 in March confirmed this prediction, marking the first time Bitcoin did this before a halving event.
According to CoinMarketCap, the next halving event is expected to occur in less than 33 days, on April 20. However, as per Tradingview data, Bitcoin’s price has fallen by 8% from its all-time high of $73,835 on March 14 to its current price of $68,056.
Insights from Prominent Figures on Bitcoin
According to a Bloomberg report, Binance CEO Richard Teng stated during an event in Bangkok on March 17 that he expects Bitcoin to continue breaking records and exceed $80,000 by the end of the year. Teng claimed that Bitcoin is just getting started and pointed to significant allocations made by institutional investors through new US exchange-traded funds, which manage $57 billion according to Dune Analytics data.
The Binance CEO predicted that Bitcoin would exceed $80,000 due to decreasing supply and continuing demand, but he noted that the journey would not be a straight line and would involve price volatility along the way. Crypto.com co-founder and CEO Kris Marszalek commented on CNBC on March 15 that the recent price drop of Bitcoin was a healthy move, eliminating some of the accumulated leverage.
He mentioned that Bitcoin was last seen in a surge from under $20,000 to over $60,000 within a little over three months at the end of 2020 and the beginning of 2021, and that the current volatility is actually quite low compared to what was seen in previous cycles.
