A closely followed analyst says that Bitcoin (BTC) is reaching a point in its market cycle that has historically coincided with significant price corrections.
In a new video update on YouTube, pseudonymous analyst Rekt Capital tells his 63,500 subscribers that roughly two to four weeks before the Bitcoin halving, when miners’ BTC rewards are cut in half, the flagship crypto asset enters a “danger zone” where it’s prone to price retracements.
Says Rekt Capital,
“Well, 28 days to 14 days before the halving event gives us a danger zone of some sort. This is a historical danger zone where Bitcoin could potentially local top in its previous rally phase before experiencing its pre-halving retrace.
So you can see that this orange danger zone is still quite a ways away. So currently actually, this pre-halving danger zone is 28 days large, so to speak, and we’re around the same amount away from this pre-halving danger zone.
So 28 days away as well, so that still means we have a few more weeks left in this pre-halving rally which makes sense because we’re technically halfway through this pre-halving rally.
Of course, the fact that we are halfway through this rally doesn’t necessarily mean we are just going to continue to moon because we have seen fantastic price action already, but even in the pre-halving rally phase, you can see that a dip of 4% did happen and dips generally can happen as we’ve seen in 2020 – these sort of downside wicks, and periods of reaccumulation.”
The halving is estimated to take place mid-April.
At time of writing, BTC is trading for $69,572.
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The post Bitcoin Coming Up on Potential ‘Danger Zone’ As BTC Halving Approaches, According to Crypto Analyst appeared first on The Daily Hodl.
