As the highly anticipated Bitcoin halving event approaches, crypto analyst Recto Capital has issued a warning, suggesting that Bitcoin is on the brink of entering the “danger zone” within the next two days. However, historical data suggests that Bitcoin could experience a significant decline in the coming weeks.
Meanwhile, the impending scenario is causing concern among investors and analysts alike, as Bitcoin price recently returned to the market at $64,533 after reaching the news ATH.
Retrace before Bitcoin halving
In a recent tweet post, cryptocurrency analyst Rekt Capital takes a closer look at Bitcoin's historical movements prior to previous halving events, revealing a worrying pattern.
Historically, Bitcoin has shown a pattern of pre-halving retrace, occurring approximately 14-28 days before each halving. These retracements often signal times of significant price corrections for Bitcoin and serve as precursors to the halving event itself.
Rekt Capital highlights historical instances of pre-halving retrace as a key reference point. For example, in 2020 Bitcoin experienced a retracement of around 20%, indicating a significant correction before the halving.
Similarly, during the 2016 halving, Bitcoin faced a more significant retracement of approximately 40%, reflecting increased market volatility and uncertainty.
Bitcoin current scenario
There are 32 days left until Bitcoin's halving, and recent market trends have heightened concerns. Bitcoin has fallen -11% in the last week alone and is currently trading at $68,533.
For the future
Rekt Capital's warning about Bitcoin's impending “danger zone” highlights the importance of historical precedent in understanding market behavior. It remains to be seen whether Bitcoin will follow historical patterns or chart a new direction, but one thing is certain: the next few days will be crucial for Bitcoin and the broader crypto market. Thing.
