As a cryptocurrency enthusiast, Rekt Capital has pointed out a compelling similarity between the recent Bitcoin pre-halving retrace and the one that occurred in 2020. This observation comes at a time when Bitcoin has shown momentum in its price, surging above $70,000 after a period of decline. According to Rekt Capital, the current pullback may have come to an end, drawing parallels to the previous pre-halving retrace.
In analyzing the data, Rekt Capital highlights that the recent pullback in the Bitcoin price has amounted to over 18% in this cycle. This figure closely mirrors the 19% retracement seen in the 2020 cycle, hinting at a potential replication of movement in this cycle. The comparison indicates a cyclical nature in the price action of Bitcoin, shedding light on possible future outcomes.
Further examination by Rekt Capital reveals that Bitcoin has been operating within a defined Weekly range since the pullback of over 18%. This range is formed by the peak wick and candle body of 2021, creating a crucial level at $69,200 as identified by the analyst. Reclaiming this range high as support suggests a positive shift in sentiment, signaling a potential end to the recent decline and opening doors for further upward movement.
As the 2024 Bitcoin halving approaches, there seems to be a struggle for Bitcoin to reclaim its recent peak of $73,000. However, the recent upward movement in price has sparked speculation that the pre-halving retrace may be nearing its conclusion. The current price of around $70,806 reflects a daily increase of over 5%, accompanied by a notable rise in market cap and trading volume, indicating growing strength in the market.
One significant factor contributing to Bitcoin’s growth this cycle is the approval of spot BTC ETFs in January 2024. This approval has provided investors with a new way to participate in Bitcoin’s value without direct ownership, leading to increased adoption and capital influx in the cryptocurrency market. Moreover, the anticipation surrounding the upcoming Bitcoin halving event in April has fueled investor interest, with historical trends suggesting potential price upticks following such events.
The analysis by Rekt Capital sheds light on the potential trajectory of Bitcoin’s price action in the midst of a pre-halving retrace. By drawing parallels to historical patterns and considering key driving factors, the cryptocurrency market’s evolution is portrayed as a dynamic and cyclical phenomenon. As investors navigate through market uncertainties and opportunities, staying informed and conducting thorough research remains crucial for making well-informed investment decisions.