The leading cryptocurrency, Bitcoin (BTC), has recently captivated the crypto community with a price increase, bolstered by optimistic sentiments and expectations related to the upcoming Bitcoin Halving event. The strong inflow into the US Spot Bitcoin ETF also enhanced market sentiment.
Expert Opinion on Bitcoin’s Path
As the market prepares for potential price movements, renowned analyst Rekt Capital shares his forecasts on Bitcoin’s critical stages and potential momentum shifts. The well-known crypto analyst Rekt Capital sheds light on the nuances of the Bitcoin Halving event and its impact on price dynamics. According to Rekt Capital’s analysis, the halving event typically unfolds in four distinct stages, each influencing the trajectory of Bitcoin’s price.
Experts say the first stage, known as the “Pre-Halving Rally,” occurs approximately 60 days before the halving event and can be marked by an increase in Bitcoin’s price. This rally is usually followed by a stage characterized by a price pullback as the event nears, known as the “Pre-Halving Retracement.” Rekt Capital specifically notes that historical data showed a retracement of 38% in 2016 and 20% in 2020. The analyst mentions that the price decline usually happens 14-28 days before the Bitcoin Halving event and can last for several weeks or approximately 80 days.
Expectations for Bitcoin’s Halving
Following the pre-halving pullback, Bitcoin enters a reaccumulation phase where the price consolidates over a few months. This period, while testing the patience of investors, could set the stage for a potential breakout towards a parabolic uptrend. Historically, this stage has witnessed accelerated growth and could signify a significant increase in Bitcoin’s price trajectory.
Rekt Capital’s analysis provides valuable insights into the cyclical nature of Bitcoin’s price movements surrounding the Halving event. While historical data can be a guide, it is important to acknowledge that past performance does not guarantee future results in the volatile crypto market. Therefore, investors are advised to approach the Bitcoin Halving event with caution, considering both historical patterns and current market conditions.
