Rekt Capital, cryptocurrency expert and enthusiast, identified a similar pattern between Bitcoin’s recent pre-halving pullback and the one that occurred in 2020 before the crypto asset witnessed a rise to its previous all-time high.
Bitcoin pullback is almost identical to 2020 pre-halving pullback
Bitcoin, the largest cryptocurrency asset, is currently showing momentum, rising over $70,000 and recovering from a recent downtrend. Following the recovery, Rekt Capital believes the pullback may be over, citing a similarity to the 2020 pre-halving. remake.
Given the uncertainty in the crypto market, the analyst is unsure if the recent surge marks the end of the pre-halving pullback. However, if that is the case, then Bitcoin would have nearly matched the 2020 pre-halving correction.
![Analyst warns of Bitcoin pre-halving setback, echoing worrying trend for 2020 1 Bitcoin](https://thegurumedia.com/wp-content/uploads/2024/03/Rekt-Capital-Bitcoin-Chart-2.jpg)
According to the analyst, the digital asset recorded a retraction of more than 18% in this cycle. Meanwhile, in the 2020 cycle, it retreated more than 19%, suggesting the asset’s potential mirroring the 2020 movement in this cycle.
Another dive in the correction made by the analyst reveals that Bitcoin has been stuck within the weekly range (black-black) since it retraced more than 18%. Both the 2021 rising peak and the 2021 candle peak combine to create the weekly range indicated by Rekt Capital.
Thus, he claims that BTC reclaiming the ‘range high’ of $69,200 as support, which has already occurred, could signal the completion of the recent decline. Furthermore, this demonstrates that Bitcoin is poised to break above its weekly range and rise further.
With the 2024 Bitcoin halving approaching, the cryptocurrency is having difficulty recovering its most recent peak of $73,000. However, there are rumors that today’s surge could mean that the pre-halving decline is coming to an end.
Considered catalysts for BTC’s strength in this cycle
At the time of writing this article, Bitcoin it recovered to around $70,806, indicating a daily increase of more than 5%. Its market value and trading volume also show strength, rising 5.49% and 47.82%, respectively, in the last day.
One of the main drivers of Bitcoin’s growth this cycle is believed to have been the approval of Spot BTC ETFs in January 2024. With the acceptance of the product, investors now have a convenient way to profit from Bitcoin’s value without actually owning any of it.
Since then, the crypto asset has witnessed increasing adoption by industry leaders and a massive inflow of capital, also boosting its price. The price of BTC has increased from $46,000 to a peak of $73,000 since ETFs were approved by the US Securities and Exchange Commission (SEC).
Another catalyst that is considered to have impacted the price of the currency is the anticipation surrounding the next Bitcoin halving, scheduled to take place in April. In the past, these types of events have led to notable price increases. Due to this, investors will shift their attention to BTC to position themselves for significant gains after the halving.
Featured image from iStock, chart from Tradingview.com
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