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Rekt Capital, a cryptocurrency expert and enthusiast, has identified A similar pattern exists between the recent Bitcoin retracement before the halving and the one that occurred in 2020, before the crypto asset saw a surge to its previous all-time high.
The Bitcoin decline is almost identical to the pre-halving retracement in 2020
Bitcoin, the largest cryptocurrency asset, is currently showing momentum, rising above $70,000 and recovering from a recent downtrend. Following the recovery, Rekt Capital believes the decline may be over, citing a similarity to the 2020 halving trace back.
Given the uncertainty in the crypto market, the analyst is unsure whether the recent rally marks the end of the pre-halving retracement. However, if this is the case, Bitcoin would have almost reached the pre-halving correction of 2020.
A tight trend between 2024 and the pre-halving retracement 2020 | Source: Rekt Capital on X
According to the analyst, the digital asset has seen a decline of over 18% this cycle. Meanwhile, it has declined by over 19% in the 2020 cycle, suggesting that the asset has the potential to mirror the 2020 move in this cycle.
Another dive The correction made by the analyst shows that Bitcoin has been trapped within the weekly range (black-black) since its decline of over 18%. Both the 2021 upward peak and the 2021 candlestick peak together form the weekly range that Rekt Capital has stated.
Therefore, he claims that reclaiming the “tension high” of $69,200 as support that has already prevailed could signal the completion of the recent decline. Furthermore, this shows that Bitcoin is ready to break above its weekly range and move higher.
As the 2024 Bitcoin halving approaches, the cryptocurrency is struggling to recapture its recent high of $73,000. However, there are rumors that today's increase could mean that the decline before the halving is coming to an end.
Considered a catalyst for BTC's strength in this cycle
At the time of writing this article BTC is back up to around $70,806, up over 5% daily. Market capitalization and trading volume are also showing strength, increasing by 5.49% and 47.82%, respectively, over the past day.
One of the main drivers of Bitcoin growth this cycle is believed to have been Bitcoin approval Explore BTC ETFs in January 2024. With the product's acceptance, investors now have a convenient way to benefit from the value of Bitcoin without actually owning any of it.
Since then, the crypto asset has seen increasing adoption by industry leaders and a massive inflow of capital, which also drove up its price. Since the ETFs were approved by the US Securities and Exchange Commission (SEC), the BTC price has risen from $46,000 to a high of $73,000.
Another catalyst that is believed to have influenced the coin's price is the expectation that the upcoming Bitcoin halving will take place in April. In the past, such events have led to significant price increases. For this reason, investors will turn their attention to BTC to position themselves for significant gains post-halving.
BTC trading at $70,599 on 1D chart | Source: BTCUSDT on Tradingview.com
Featured image from iStock, chart from Tradingview.com
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