The Bitcoin price has experienced a retracement in today’s trading session, following a period of reclaiming lost ground. Unless buyers are able to halt the current price action, the selling pressure could push BTC back to critical support levels.
As of now, Bitcoin is trading at $27,400 with a 2% loss in the last 24 hours. Over the past week, the cryptocurrency has recorded a 3% loss, following a similar trend to the rest of the top 10 cryptocurrencies by market cap.
One crypto analyst and trader, Rekt Capital, has shared a thesis concerning the upcoming Bitcoin Halving event. The Halving is designed to halve the rewards miners receive for including new blockchain transactions. In 2024, these rewards will drop from the current 6.25 BTC per block to 3.125 BTC. This event is significant in the Bitcoin ecosystem as it directly impacts the supply and demand dynamics of the BTC market.
According to Rekt Capital, Bitcoin tends to exhibit certain behavior as the Halving event approaches. In 2019, after years of downward trends and sideways movement, Bitcoin experienced a relief rally. The analyst believes that the recent upside momentum in the cryptocurrency coincides with this relief rally. Comparing the price action in 2019 to the current price action, there are similarities that suggest a potential pattern.
Related Post
The chart provided by Rekt Capital shows that following the relief rally, the cryptocurrency crashed from the short-term top. If history repeats itself, Bitcoin’s price may drop to the lows of the trading range, targeting a critical resistance level of around $30,000.
Although it is important to note that history does not always repeat itself in the same way, Rekt Capital sees this potential crash as an opportunity and a roadmap for market participants. Traders should be attentive to any spike in trading volume as Bitcoin approaches this critical point. Approximately two months before the Halving, an increase in trading volume should signal an imminent rally.
In the short term, traders should pay attention to the low point identified by Rekt Capital. If Bitcoin reaches these levels, there may be an opportunity to establish a position before BTC reclaims the area above $30,000. The chart provided by Rekt Capital indicates that the cryptocurrency often breaks critical resistance levels in close proximity to the Halving.
Rekt Capital suggests that approximately 60 days before the Halving, a Pre-Halving rally tends to occur, characterized by light blue on the chart. This is followed by investors “Buying the Hype” in anticipation of the Halving, leading to the “Sell the News” phase. Once Bitcoin breaks out from the re-accumulation area and enters a parabolic uptrend, represented by the green phase on the chart, it experiences accelerated growth on its way to new All-Time Highs.
While past price data can offer insights into potential future results, it is important to consider that history does not always repeat itself exactly. However, Rekt Capital’s analysis provides a potential roadmap for traders and investors to monitor and potentially capitalize on the price action leading up to the Bitcoin Halving event.
In conclusion, the Bitcoin price has retraced after a period of reclaiming lost ground. Buyers need to prevent further selling pressure to maintain critical support levels. Rekt Capital’s analysis suggests that Bitcoin’s price may potentially see a drop to the trading range lows before a potential rally leading up to the Halving event. Traders should monitor key support levels and trading volume for potential opportunities in the market.
