A popular cryptocurrency analyst believes that Bitcoin (BTC)’s pre-halving rally is still in its early stages.
Pseudonymous crypto trader Recto Capital told his 57,300 YouTube subscribers that based on past patterns, Bitcoin's pre-halving rally could extend for several more weeks. Told.
Bitcoin halving is scheduled for April, when BTC miners' rewards will be halved.
Recto Capital said:
“The main takeaway here is that this pre-halving bull market has technically just begun, and it’s a bit premature to talk about the last pre-halving retrace. This pre-halving retrace tends to occur several weeks before a halving event, meaning either the price stays high for a few more weeks, it reaccumulates at the high before a retest or retrace, or it is preceded by a more limited upside. That means we could see or we could still have a few weeks left, and that return would occur.”
The trader believes that a conservative estimate of Bitcoin's correction before the halving could be a 15% to 20% decline.
“Generally speaking, we should see upside for at least another two to three weeks, three weeks in general. So whether it's an upside or a re-accumulation of the highs, and the upside is also limited. Still, we are not yet in the final retrace phase before the halving. And speaking of retracement periods, the retrace rate in 2020 was 19%…
But in 2016… it was 29% when considering just the candle itself. So at this point in the cycle you can expect values between 19% and 30%.
And the cycle itself, you might want to be a little more conservative and say 15% or 20%. Regardless of what happens with this retrace, it will be the last retrace before the halving and the last buy-on-the-fence opportunity before we move into the post-halving re-accumulation period. It will last quite a while. ”
At the time of writing, Bitcoin was trading at $50,767, declining slightly over the past 24 hours.
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