Crypto analyst Rekt Capital warns that Bitcoin could be just days away from entering a pre-halving “danger zone,” historically marked by price drops leading up to its halving event.
Rekt Capital notes that in the past, Bitcoin’s price has experienced dips in the 14 to 28 days preceding its halving. For instance, during the 2016 halving, Bitcoin witnessed a 40% decline, followed by a 20% drop in 2020.
In January, Rekt Capital predicted a “pre-halving rally” approximately 60 days before the halving, succeeded by a “pre-halving retrace” occurring one to three weeks prior to the event. This forecast materialized as Bitcoin surged in mid-February and surpassed its previous cycle’s all-time high in March.
With the next halving anticipated in around 33 days, Bitcoin’s price has already decreased by 8.5% from its March 14 all-time high of $73,835 to $67,537.
Despite the potential pre-halving volatility, Binance CEO Richard Teng remains bullish, expecting Bitcoin to surpass $80,000 by year-end. He attributes this optimism to institutional investors’ increasing allocation to Bitcoin through new ETFs.
Crypto.com co-founder and CEO Kris Marszalek views Bitcoin’s recent price drop as a healthy correction, anticipating a steady price increase with reduced volatility compared to previous cycles. He emphasizes Bitcoin’s long-term potential as an asset for decades.
As Bitcoin approaches its halving, investors remain watchful of historical patterns while balancing optimism for future price growth, acknowledging short-term volatility amidst long-term prospects.
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