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We have now entered a new era for cryptocurrencies, and the hopes of investors for 2024 are extremely high. This is because we are only 4 months away from the halving, which has triggered significant surges in previous cycles. Moreover, this is not the only motivation; we will see many developments that will excite investors, from ETF approvals to Federal Reserve interest rate cuts.
Crypto Expert’s 2024 Forecast
Rekt Capital has done a good job identifying previous lows and highs and is quite popular among cryptocurrency investors. Today, he addressed the details about the halving that investors need to know on social media. There are important clues here, and investors need to be very vigilant.
BTC Halving and Events This Year
The analyst’s primary focus is on the pre-halving period because the halving will occur in April 2024, and we are currently in this exact period. Rekt Capital wrote the following about this period;
“Historically, deeper pullbacks during this period have led to significant gains a few months after the halving.
Could this pullback be a result of the resolution of the excitement and speculation surrounding the Bitcoin ETF?
This means that we could experience a deeper pullback within the next two months, that is, between now and early March. The next two-month period will be very important because any pullback during this time will likely represent the last bargain buying opportunity for Bitcoin.”
BTC is currently struggling to reclaim the $43,000 mark, and the majority of altcoins have started the new year in the green. But what will happen in the second phase?
“Then, about ~60 days before the Halving, a Pre-Halving rally tends to occur. Short-term traders and speculators, expecting to profit from this hype-driven rally, buy into the ‘Hype’ a few weeks before the Halving. Later, these speculators contribute to the Pre-Halving pullback by ‘Selling the News’ just a few weeks before the actual Halving event.”
Therefore, investors should also be prepared for a potential ‘sell the news’ event during this period.
“A Pre-Halving pullback tends to occur around the Halving event itself. (The dark blue circle in the graph above)
In 2016, this pullback was -38% deep.
In 2020, it was -20% deep.
This Pre-Halving pullback can last several weeks and may cause investors to question whether the Halving is a bullish catalyst for the price.”
The analyst also explains the fourth and fifth stages as follows;
“Following the pre-halving pullback, several months of reaccumulation ensue (red). Many investors are shaken during this stage by boredom, impatience, and disappointment due to not seeing significant results in BTC investments immediately after the Halving.
In the final stage, a parabolic growth trend begins. At this stage, Bitcoin experiences accelerated growth on its way to reaching an All-Time High.”
