Cryptocurrency expert Rekt Capital has highlighted a striking resemblance between the recent Bitcoin pre-halving retrace and the one that occurred in 2020. This similarity has piqued the interest of many in the crypto community, as it could potentially indicate an upcoming upsurge in the value of the largest cryptocurrency asset.
Bitcoin is currently on a positive trajectory, with its price surpassing $70,000 and recovering from a recent downward trend. Despite this recovery, there is still a sense of uncertainty lingering in the market. Rekt Capital believes that the recent pullback may have come to an end, drawing parallels to the 2020 pre-halving retrace.
While the analyst is not completely certain whether the recent uptrend signifies the conclusion of the pre-halving retrace, there are indications that Bitcoin may have closely mirrored the correction from 2020. Comparing the pullback percentages from the two cycles, it is evident that there is a potential for history to repeat itself in this cycle as well.
A deeper analysis of the correction made by Rekt Capital unveils that Bitcoin has been moving within a Weekly range ever since retracing by over 18%. The peaks from 2021, both upside-wicking and candle-bodied, have contributed to creating this range. Rekt Capital suggests that BTC reclaiming the $69,200 ‘range high’ as support could mark the turning point of the recent decline, signaling a potential upward movement.
Despite the positive indicators, Bitcoin is facing challenges in reclaiming its recent peak of $73,000 as the 2024 halving approaches. Speculations are circulating that the current increase in price could signify the end of the pre-halving decline, but only time will tell how the market unfolds in the coming days.
One of the significant drivers behind Bitcoin’s growth in this cycle has been the approval of spot BTC ETFs earlier in 2024. This approval has provided investors with a new way to participate in the cryptocurrency’s value appreciation without direct ownership. The increased adoption from industry leaders and a surge in capital inflows have further fueled Bitcoin’s price, pushing it from $46,000 to $73,000 post-ETF approval.
Another catalyst that has impacted Bitcoin’s price is the anticipation surrounding the upcoming halving event set to take place in April. Historical data has shown that such events often lead to substantial price increases, prompting investors to position themselves accordingly to capitalize on potential gains following the event.
As Bitcoin continues its journey towards potential new highs, it is essential for investors to exercise caution and conduct thorough research before making any investment decisions. The market remains volatile, and while past patterns can provide insights, they do not guarantee future results. Keep a watchful eye on how Bitcoin navigates through the upcoming challenges and opportunities in the ever-evolving world of cryptocurrency trading.
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