In a scintillating discovery amidst the ebb and flow of the ever-volatile world of cryptocurrencies, noted crypto enthusiast and expert, Rekt Capital, has highlighted a compelling parallel. A pattern apparent between the recent Bitcoin dip just prior to the halving event, and its similar trajectory observed in the tumultuous year of 2020 has got the markets abuzz. During 2020, Bitcoin experienced a comparable dip before catching the bullish wave to its biggest rally yet, reaching its then all-time high.
Current market trends show Bitcoin, the world’s premier cryptocurrency, gathering robust momentum, as it scales past the $70,000 mark, shaking off the recent slump that had investors on edge. With this strong rebound, Rekt Capital anticipates the downturn may be over, bolstering his assertions with resonances to the pre-halving dip of 2020.
However, the complex landscape of the crypto market is riddled with uncertainties, leaving the analyst unsure whether the recent resurgence definitively signals the cessation of the pre-halving plunge this time around. But, should this be the case, Bitcoin would be closely replicating its pre-halving correction patterns from 2020.
Drawing parallels between Bitcoin’s cycles in 2024 and 2020, Rekt Capital notes the digital asset has suffered a pullback of over 18%. Interestingly, Bitcoin registered a similar retrace of over 19% in the prior 2020 cycle, implying the digital heavyweight could mirror the ’20 dip in the current cycle.
A meticulous analysis from the expert indicates that Bitcoin has been held captive within the weekly range since it retreated by more than 18%. This range, encapsulating both the optimistic 2021 peak and the candle-bodied 2021 peak, forms the basis of Rekt Capital’s predictions. He therefore concludes that Bitcoin’s reinstatement of the $69,200 ‘range high’ as a support line might signal the imminent end of the recent downturn. This suggests that Bitcoin is primed for an upward trajectory, set to vault beyond its weekly range.
Indeed, as the 2024 Bitcoin halving looms, the leading cryptocurrency seems to tread a challenging path to reclaim its recent peak of $73,000. Yet, the buzz in the market suggests that the surge witnessed today could herald the end of the gloomy pre-halving downturn.
At the time of this writing, Bitcoin has bounced back to about $70,806, revealing an impressive daily uptick of over 5%. Similarly, its market cap and trading volumes are demonstrating formidable resilience, escalating by 5.49% and 47.82% respectively, in just one day.
Two major catalysts believed to be fueling Bitcoin’s growth this cycle are the approval of spot BTC ETFs in January 2024, and the anticipation surrounding the forthcoming Bitcoin Halving set for April. The sanctioning of the ETFs by the US Securities and Exchange Commission gave investors a lucrative outlet to derive profits from Bitcoin’s value without actual ownership of the asset.
Since the ETF approval, Bitcoin has witnessed enhanced adoption from industry front-runners and a dramatic inrush of capital, propelling its price skyward, from $46,000 to its peak of $73,000. Going forward, the anticipated Bitcoin Halving is expected to create a sharp market disruption as events of this nature historically have incited significant price escalations, leading investors to shift their focus towards Bitcoin for potential substantial gains post-halving.
