Rekt Capital, a well-known cryptocurrency expert, has recently pointed out a pattern in the Bitcoin market that resembles the pre-halving retrace of 2020. This observation comes at a time when Bitcoin is showing significant momentum, surpassing the $70,000 mark and recovering from a recent downtrend. The analyst believes that the recent pullback might be nearing its end, drawing parallels to the 2020 pre-halving correction. However, amidst the uncertainties of the crypto market, it remains unclear if the current upsurge signifies the conclusion of the pre-halving retrace.
Looking back at the data, it is evident that Bitcoin has experienced a pullback of over 18% in this cycle, closely resembling the 19% retrace seen in the 2020 cycle. Further analysis by Rekt Capital reveals that Bitcoin has been consolidating within a specific weekly range since the 18% retracement. This range is defined by both the upside-reaching peak of 2021 and the candle-bodied peak of 2021, as highlighted by the analyst. Reclaiming the $69,200 ‘range high’ as support, a move that has already transpired, could indicate the end of the recent decline and pave the way for Bitcoin to break out of its weekly range and surge higher.
As Bitcoin inches towards the 2024 halving, it struggles to regain its recent peak of $73,000. However, recent rumors suggest that the current uptrend may signal the end of the pre-halving decline. At the time of writing, Bitcoin has rebounded to approximately $70,806, marking a daily increase of over 5%. Additionally, both its market capitalization and trading volume have shown strength, rising by 5.49% and 47.82%, respectively, within the past day.
One of the key drivers behind Bitcoin’s bullish run this cycle is believed to be the approval of spot Bitcoin ETFs in January 2024. This approval has provided investors with a convenient way to capitalize on Bitcoin’s value without direct ownership of the asset. Subsequently, Bitcoin has witnessed increased adoption by major industry players and a significant inflow of capital, pushing its price higher. Since the approval of the ETFs by the SEC, Bitcoin has surged from $46,000 to a peak of $73,000, showcasing the impact of this development on its price trajectory.
Anticipation of the Halving Event
Apart from the ETF approval, another catalyst influencing Bitcoin’s price is the anticipation surrounding the upcoming Bitcoin Halving scheduled for April. Historically, such events have led to substantial price rallies, prompting investors to position themselves for potential gains post-halving. With the halving event on the horizon, market participants are closely monitoring Bitcoin’s price action and gearing up for possible price movements.
The current scenario in the Bitcoin market presents a mix of optimism and caution. While the similarities to the 2020 pre-halving correction are intriguing, the unpredictability of the crypto market adds a layer of uncertainty to the analysis. Investors and traders are advised to conduct thorough research and exercise caution when navigating the volatile landscape of cryptocurrencies. The potential of Bitcoin’s pre-halving retrace continues to be a topic of interest and debate within the crypto community, with market participants closely monitoring key indicators and developments to gauge the future trajectory of the digital asset.