Key Point:
- Rekt Capital believes that a pre-halving move in Bitcoin will occur despite the impact of ETFs.
- Bitcoin performs a pre-halving retracement 14 to 28 days before a halving event.
- Analysts revealed that there will also be some post-halving accumulation before BTC rises parabolically.
According to Rekt Capital, a well-known crypto analyst at The analyst acknowledged that newly launched ETFs have played a role in the development of the Bitcoin market. However, like in previous bull cycles, he believes there will be a retracement before the halving.
In his post, Rekt Capital predicted that Bitcoin would enter the “danger zone” within the next few days. According to him, the danger zone is where the pre-halving retracement begins. Using historical data, he explained that Bitcoin performs a pre-halving retracement 14 to 28 days before a halving event.
To further illustrate his observation, this renowned analyst showed that Bitcoin fell by 20% in the days leading up to the 2020 Bitcoin halving. Similarly, before the 2016 halving event, the flagship cryptocurrency fell 40% after an initial rally.
At the time of Rekt Capital's post, Bitcoin's halving event was 31 days away, and the pioneering cryptocurrency had rebounded by 11%. According to TradingView data, BTC has fallen from its recently achieved all-time high (ATH) of $73,794 to around $65,000.
The well-known analyst accompanied his prediction with chart analysis that suggests Bitcoin could experience further price declines during the post-halving re-accumulation phase. He also revealed that the post-halving accumulation will prime the top cryptocurrencies for a parabolic upward move post-halving.
At the time of writing, Bitcoin was trading at $65,469, amidst general market downtime. The impact of newly launched ETFs on the current bull market is significant, especially in pushing BTC to a new ATH ahead of the halving event. This is a situation that the crypto market had not experienced until the current bull cycle.
