Popular crypto analyst Rekt Capital has declared his belief that Bitcoin‘s (BTC) rally, rapidly approaching its 4th block reward halving, is still in its early stages. The analyst suggested that Bitcoin and altcoins could have more upside potential in the coming weeks.
Expecting the Bitcoin Rally to Persist for a While Before the Halving
Bitcoin and altcoins’ latest observations were shared by the anonymous crypto analyst Rekt Capital on his YouTube channel, where he pointed out that the rally before Bitcoin’s block reward halving typically lasts several weeks, according to past models.
The 4th block reward halving of Bitcoin, planned for April, will cut the reward miners receive per block in BTC by half. Based on past models, Rekt Capital stated that the pre-halving rally could continue for several more weeks before a potential pullback or correction occurs. He added that in previous cycles, the pullback before the halving typically happened a few weeks before the event.
According to the analyst, a correction before the block reward halving could be most likely within a 15 to 20 percent drop range. Rekt Capital noted that such a correction could be the last chance to buy at lower prices before moving into a post-halving accumulation phase, and it could represent a long-term opportunity.
Highlighting Pullbacks Before Previous Halvings
Referring to previous block reward halving cycles, Rekt Capital highlighted that Bitcoin experienced a 19% pullback in 2020 and a roughly 29% pullback in 2016. Considering the current cycle, the analyst’s forecast of a 15 to 20 percent pullback seems like a reasonable estimate, and it would not be wrong to say that this pullback could offer a potential buying opportunity for investors before the post-halving phase.
At the time of writing this article, the largest cryptocurrency, Bitcoin, was trading around $51,000, with a limited decline observed in the last 24 hours. Rekt Capital’s analysis suggests that BTC’s price could continue its upward trend at least until the middle of April, leading up to the expected block reward halving event.
