Pre-halving analysis of Bitcoin: BTC price could see a potential retracement of 20-30%.
Bitcoin’s recent break from its macro downtrend has sparked discussion among analysts about what’s next for Bitcoin, especially with its impending halving. In a recent video, analyst Rekt Capital opened up about potential scenarios for Bitcoin price action and compared them to historical patterns.
The analysis primarily focuses on the extent of reaccumulation forming prior to the halving and highlights similarities with the 2015-2016 period. The current extent of reaccumulation appears similar to that observed during the mentioned historical period.
A key point of discussion is the potential for a decline before or after the halving, with analysts suggesting a scenario where a departure from the redeployment range leads to a decline. A comparison with the 2015-2016 cycle highlights a similar rejection at pre-halving resistance levels, contributing to a potential downside.
Bitcoin creating a new ATH?
His analysis addresses concerns within the cryptocurrency community about the possibility of a pre-halving retracement. The analyst highlights that while historical data indicates such retracements, they tend to be shallow. Recent analysis suggests the price of Bitcoin is around $46,000 and a potential retracement of 20-30%.
“But usually around the retracement before the halving is the last chance, and then we’re pulling back and rallying to get above here and perhaps turn this 46,000 level into new support and then revisit the previous highs, which is what happened here. Because going beyond those, we’ve gone beyond here and taken a step back. It’s not a complete retest by any means unless you want to bring…
One aspect highlighted in the analysis is the pattern of resistance weakening over time. By comparing the current cycle’s resistance levels to those of the past, analysts suggest that rejections could become less severe and potentially lead to shallower retracements.
As of this writing, Bitcoin is trading at $41,453. The coin is trading in the red and is down more than 3%.