A well-known crypto industry specialist revealed four significant stages of Bitcoin halving.
Previous trends point to a retreat before a price halving and a significant price increase.
Investors cautioned against investing in the erratic market, as the price of Bitcoin is rising.
The cryptocurrency world has been enthralled with Bitcoin’s recent price spike, driven by positive emotions and excitement over the impending Bitcoin Halving event. Furthermore, the substantial influx into the U.S. Spot Bitcoin ETF has bolstered the market sentiment.
However, well-known analyst Rekt Capital offers insights into crucial stages and possible momentum shifts of Bitcoin as the market braces for possible price movements. Knowing these stages could help investors navigate the ever-changing cryptocurrency market.
Important Bitcoin Halving Phases Revealed by Rekt Capital
Rekt Capital, a renowned cryptocurrency analyst, clarifies the nuances of the Bitcoin Halving event and how it affects price dynamics. Rekt Capital’s analysis indicates that the Halving event usually occurs in four distinct phases, each impacting the future direction of Bitcoin’s price.
The first stage dubbed the “Pre-Halving Rally,” is characterized by a spike in the price of Bitcoin, which happens about 60 days prior to the Halving event. Following this rally, there is frequently a “Pre-Halving Retrace” phase, marked by a price decline as the event gets closer. Rekt Capital points out that historical trends indicate a 38% retracement in 2016 and a 20% retracement in 2020.
According to the analyst, the price decline typically happens 14–28 days before the Bitcoin halving event and can extend for several weeks or approximately 80 days.
In the meantime, after the pre-halving retreat, the price of Bitcoin goes through a re-accumulation period that lasts for several months. While trying investors’ patience, this phase lays the groundwork for a possible breakout into a “Parabolic Uptrend.” Historically, this stage has seen faster growth, which has resulted in a notable increase in the price trajectory of Bitcoin.
Analysis of the price of bitcoin amid halving optimism
In 1 day, Bitcoin will officially enter the “Danger Zone” (orange) where historical Pre-Halving Retraces have begun
Historically, Bitcoin has performed Pre-Halving Retraces 14-28 days before the Halving
In 2020, this retrace was -20% deep and began 14 days before the… pic.twitter.com/BdHyDkes4B
— Rekt Capital (@rektcapital) March 18, 2024
The analysis by Rekt Capital sheds important light on how cyclical the price fluctuations of Bitcoin were in the run-up to the Halving incident. Even though previous statistics can be helpful, it’s essential to recognize that prior success does not guarantee future results in the erratic cryptocurrency market.
Investors should proceed cautiously regarding the Bitcoin Halving event, considering both past trends and the state of the market.
Potential Price Momentum and Investor Outlook:
Investors keep a careful eye on price changes and market conditions as Bitcoin progresses through the stages described by Rekt Capital. The excitement surrounding the impending Bitcoin halving event, together with favorable attitudes and institutional investments, may propel the price of Bitcoin to unprecedented levels.
Nonetheless, given the inherent volatility and uncertainty of the cryptocurrency market, investors should exercise caution.
Even though Rekt Capital’s study offers a road map for comprehending the price trajectory of Bitcoin, investors still need to do their homework and proceed with prudence when making investment decisions. With Bitcoin continuing to establish itself as the industry leader in digital assets, strategic perspectives like those offered by Rekt Capital help navigate the constantly changing crypto ecosystem.
As of this writing, Bitcoin’s one-day trading volume was down 26% to $40.8 billion, but its price was up 1.33% to $68,123.46. Even with the gains, the cost of Bitcoin dropped by almost 5% during the past seven days, but it still saw a rise of more than 32% for the month.
