Cryptocurrency analyst and trader Rekt Capital has recently brought attention to an intriguing discovery regarding Bitcoin’s price trend. His analysis suggests that the current price action of Bitcoin is closely mirroring historical patterns from a bull cycle that occurred eight years ago.
According to Rekt Capital, the resemblance of Bitcoin’s current price trend to that of the 2016 bull cycle is remarkable. During the 2016 bull cycle, Bitcoin experienced a substantial growth of almost 3,000% following the Bitcoin Halving event. This historical data indicates that Bitcoin could be on track for significant growth in the coming months.
Rekt Capital also highlighted his previous analysis on Bitcoin’s post-Halving movement, which he referred to as the “Post-Halving Danger Zone.” He pointed out that Bitcoin is currently within this danger zone and has dipped below the Re-Accumulation Range Low, echoing a pattern seen in 2016. While the move below the range was around 17% in 2016, the current divergence is approximately 6%.
Drawing from the data of the 2016 cycle, Rekt Capital suggested that if Bitcoin experiences downside volatility around the Re-Accumulation Range Low, there could be a turnaround to the upside within the next 10 days. Despite the upcoming end of the Post-Halving Danger Zone, historical data from 2016 indicates the possibility of negative volatility around the $60,600 Range Low in the interim.
Rekt Capital also identified a danger zone before the event, where previous Pre-Halving retracements have typically initiated. He noted that in past cycles, Bitcoin has experienced retracements between 14 and 28 days before the Halving, and the current cycle aligns with this pattern. The first pre-Halving retrace of -18% was observed around 30 days before the event, similar to the 2016 cycle.
Based on the historical data and current price movements, Rekt Capital expressed confidence in the potential for a danger zone after the Halving event. However, he also acknowledged that the retracement from the recent all-time high has been deeper and longer compared to past retracements, spanning several weeks. This has led him to predict a high probability that Bitcoin prices may have already bottomed out.
As of the latest update, Bitcoin’s price has shown a positive sentiment, with a 0.43% increase to $64,126 over the past day. The market cap and trading volume of Bitcoin have also seen slight gains of 0.50% and 24.43%, respectively, in the last 24 hours.
Analyzing Bitcoin’s price trends through historical patterns can provide valuable insights into potential future movements. By closely monitoring historical data and current market conditions, traders and analysts can make more informed decisions when navigating the volatile cryptocurrency market.