As the Bitcoin halving approaches, renowned cryptocurrency expert Rekt Capital highlights a potential repeat of 2020’s pre-halving retracement pattern. In 2020, a similar retracement was followed by Bitcoin reaching unprecedented price levels.
Bitcoin’s Recent Recovery Offers Hope After Retracement
Bitcoin (BTC), the world’s leading cryptocurrency, has regained momentum, surpassing the $70,000 mark and showing recovery after a bearish period. Analyst Rekt Capital believes this recovery might indicate the end of the pre-halving pullback, highlighting a striking resemblance to the market’s behavior in 2020.
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While acknowledging the inherent volatility of cryptocurrency markets, the analyst notes that if history repeats itself, Bitcoin’s current retracement would closely mirror the 2020 pre-halving correction. In this cycle, BTC has already seen a pullback exceeding 18%, a figure close to the 19% retracement documented in 2020.
Technical Analysis Suggests Potential BTC Upswing
Rekt Capital’s technical analysis indicates that Bitcoin’s price movement has been constrained within a specific weekly range (black-black) following a retracement exceeding 18%. The boundaries of this range are determined by the upside wick and candle body of 2021 price peaks.
Rekt Capital also hinted at a potential BTC price breakout and an end of the current market pullback. He said “Reclaiming the ~$69200 Range High as support could confirm the end of this pullback period and confirm that Bitcoin is ready to break out from this Weekly range”
Ever since Bitcoin pulled back -18%…
Bitcoin has been sandwiched inside this Weekly range (black-black)
This Weekly range is essentially formed by the candle-bodied 2021 peak & the upside wicking 2021 peak
Reclaiming the ~$69200 Range High as support could confirm the… pic.twitter.com/HXPphNlRX6
— Rekt Capital (@rektcapital) March 25, 2024
Factors Driving Bitcoin’s Growth
According to CoinMarketCap, Bitcoin is currently trading around $69,900, registering a daily surge of over 2%. A key catalyst in this cycle has been the approval of spot BTC ETFs in January 2024.
These ETFs provide investors with direct exposure to Bitcoin without the complexities of direct ownership. Institutional adoption and capital inflow have also accelerated since the SEC’s approval, driving the price of BTC from $46,000 to its $73,000 peak.
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Read Also: This Top Analyst Says History Suggests Bitcoin (BTC) Is Yet To Bottom, Sets His Price Target
Furthermore, the upcoming Bitcoin halving in April has captured investor attention. Historically, halving events have often been followed by significant BTC price increases. With the 2024 Bitcoin halving event on the horizon, the cryptocurrency remains elusive in reclaiming its recent $73,000 peak.
Nonetheless, the current upswing may signify a conclusion to the pre-halving retracement. The cryptocurrency market is inherently volatile. This article provides analysis and historical context, but it is not intended as financial advice.
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