Bitcoin (BTC) encountered an incredible price movement last evening, with a sharp sell-off bringing the price down to $65,000 in the last 24 hours, causing a stir in the entire market. Despite the drop, a recovery in Bitcoin‘s price was observed, yet a significant resistance was noted at $68,000 before the halving.
Current State of Bitcoin Before the Halving
On the other hand, renowned cryptocurrency analyst Rekt Capital pointed out three key aspects in a post on April 12th via X (formerly known as Twitter), which could support investors in maximizing profits related to the upcoming halving event.
According to Rekt Capital, investors are currently discussing whether the first level, which emphasizes a price drop in Bitcoin as positions are adjusted before the halving, has already occurred.
Contrary to previous price pullbacks seen in 2016 and 2020, this time the retracement has only been about 18%, the analyst notes.
While this pre-halving retracement is at -18% depth, it was -38% in 2016 and -19% in 2020. This pre-halving pullback was the last bargain buying opportunity before the Halving period.
Commentary on Bitcoin
Considering the pullback has occurred, Bitcoin might have entered a reaccumulation phase. This phase is associated with a sideways price movement that lays the groundwork for a potential next price surge.
According to the analyst, this reaccumulation process could happen within a few weeks, though it has sometimes lasted 150 days or more.
The analyst believes that investors may exhibit impatience during this period.
The current target is for Bitcoin to move sideways, halve, and then advance further. Many investors feel frustration, impatience, and disappointment due to not seeing significant results in BTC investments immediately after the halving.
The Future of Bitcoin
Once Bitcoin exits the mentioned accumulation range, bullish sentiments could emerge, leading to an accelerated growth trajectory.
Based on the analyst’s study, historically, this phase has taken more than a year to materialize. However, Rekt Capital suggests that under current market conditions, the process could be shorter.
The analyst also mentions that during the specified timeframe, Bitcoin could reach all-time highs. Historically, Bitcoin has shown signs of reaching record levels after a halving.
Interestingly, before the current halving cycle, Bitcoin surprised everyone by climbing above $73,000. The effect of the exchange-traded fund (ETF) launched in the US in January could also reshape this process.
