The cryptocurrency expert Rekt Capital has pointed out a striking resemblance between the recent Bitcoin pre-halving retrace and the one that occurred in 2020. Back then, this retrace was followed by a significant upsurge that led the crypto asset to reach its previous all-time high. Currently, Bitcoin, the largest cryptocurrency asset, is showing signs of momentum, with its price rising above $70,000 after recovering from a recent downward trend.
Rekt Capital believes that the recent pullback may have come to an end, drawing parallels to the 2020 pre-halving retrace. However, given the unpredictable nature of the crypto market, the analyst cannot be certain whether the recent upsurge signifies the conclusion of the pre-halving retrace. If indeed that is the case, then Bitcoin would have almost mirrored the pre-halving correction from 2020.
A closer examination of the correction by the analyst reveals that Bitcoin has been stuck within the Weekly range ever since it retraced by more than 18%. This range, indicated by Rekt Capital, is defined by both the upside-wicking 2021 peak and the candle-bodied 2021 peak. By reclaiming the $69,200 ‘range high’ as support, which has already occurred, Bitcoin could potentially signal the end of the recent decline. This suggests that Bitcoin is now poised to break out of its weekly range and surge higher.
As the 2024 Bitcoin halving approaches, the cryptocurrency is facing challenges in surpassing its most recent peak of $73,000. Nevertheless, there are speculations that the recent price increase could indicate the conclusion of the pre-halving decline. At the time of writing, BTC has bounced back to around $70,806, showing a daily increase of over 5%. Both its market cap and trading volume have also exhibited strength, rising by 5.49% and 47.82%, respectively, in the past day.
One of the key drivers of Bitcoin’s growth this cycle is attributed to the approval of spot BTC ETFs in January 2024. This approval has provided investors with a convenient way to profit from Bitcoin’s value without actually owning the asset. Consequently, the cryptocurrency has experienced increased adoption from major industry players and a substantial influx of capital, which has driven up its price significantly.
Another catalyst that has influenced Bitcoin’s price is the anticipation surrounding the upcoming Bitcoin Halving scheduled for April. Historically, such events have resulted in notable price surges for the cryptocurrency. Investors are now focusing on BTC in anticipation of substantial gains following the halving event. The price of Bitcoin has risen from $46,000 to a peak of $73,000 since the approval of the ETFs by the US Securities and Exchange Commission (SEC).
The recent price movements of Bitcoin suggest a potential reversal in its pre-halving retrace, with indicators pointing towards a bullish sentiment in the market. While uncertainties remain, particularly regarding the completion of the pre-halving correction, the overall trend seems to be in favor of a bullish continuation for the cryptocurrency.
(Note: The information provided in this article is for educational purposes only and does not constitute financial advice. Readers are encouraged to conduct their own research before making any investment decisions.)
