O Bitcoin price has been on a downward trend since hitting a new all-time high of $73,000, kicking off a wave of speculation about the crypto asset’s next direction in the near term.
In recent days, Bitcoin’s recent crash has triggered a general pullback in the crypto market. With the Bitcoin Halving event quickly approaching, many crypto analysts are anticipating a further decline in the price of BTC in the near future.
Bitcoin Primed for “Danger Zone” Ahead of Halving Event
Popular cryptocurrency trader and analyst Rekt Capital has shared a grim prediction for Bitcoin with the crypto community on social media platform dubbed the “Danger Zone”.
The analyst’s prediction came in light of BTC experiencing a notable decline in recent days. According to the expert, in two days Bitcoin will formally venture into the Danger Zone (orange).
This is the initial area of previous pullbacks seen ahead of the BTC Halving, which is expected to occur in April. Before the halving, these pullbacks constantly indicated intervals of substantial market corrections for the digital asset.
Rekt Capital further highlighted that pre-halving pullbacks have historically been observed in BTC 14-28 days before the event. Bitcoin price witnessed a pullback of around 40% before the 2016 halving occurred.
Meanwhile, in 2020, the crypto asset fell more than 40% before the occasion. There are currently less than 30 days until this year’s date BTC halving takes place; however, the coin’s price fell more than 11% last week, suggesting further corrections in the coming weeks.
The post said:
In 2 days, Bitcoin will officially enter the “Danger Zone” (orange), where pre-halving history began. Historically, Bitcoin has performed pre-halving retracements 14-28 days before the halving. In 2020, this pullback was -20% deep, and in 2016, this pullback was -40% deep. Currently, BTC is 30 days away from halving and has declined -11% this week.
It is worth noting that the crypto analyst had already identified the deadline Bitcoin expected to peak in this bull cycle. Rekt Capital believes the asset will peak within 280-350 days. Specifically, this could occur in mid-December this year or mid-February next year.
4 distinct halving phases
So far, crypto analyst highlighted several different phases for the next Bitcoin halving; these include the Pre-Halving Rally, the Final Pre-Halving Retracement, the Reaccumulation, and the Parabolic Uptrend.
According to Rekt Capital, there is usually a rally before halving approximately 60 days before the event takes place. For the final retracement before the halving, it usually develops around 14 to 28 days before.
Furthermore, after the pre-halving pullback, a reaccumulation period of several months follows. Lastly, the parabolic uptrend begins when Bitcoin breaks out of the reaccumulation area.
Featured image from iStock, chart from Tradingview.com
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