Bitcoin (BTC) surprised investors after dropping to as low as $65,000 in the last 24 hours amid the ongoing short-term market sell-off. The sudden price drop has seen Bitcoin encounter significant resistance at $68,000, barely a week before the halving event. In line with this development, crypto trading analyst Rekt Capital, in an X (formerly Twitter) post on April 12, identified three stages revolving around the halving event that can help investors capitalize for maximum profits.
Final Pre-Halving Retrace
According to the analyst, this first level has already occurred, characterized by a downturn in Bitcoin’s price as investors adjust their positions ahead of the halving event. The analyst pointed out that the retracement amounted to a mere 18%, starkly contrasting previous retracements observed in 2016 and 2020.
The expert said that this pre-halving retrace was -18% deep whereas in 2016 it was -38% and in 2020 it was -19% deep. This pre-halving retrace was the final bargain-buying opportunity in the pre-halving period.
Bitcoin price analysis chart. Source: TradingView/RektCapital
Re-accumulation Phase
With the retrace already occurring, Bitcoin has entered the re-accumulation phase. This stage is characterized by sideways price movement, setting up a foundation for the next leg of growth. According to the specialist, this re-accumulation process usually takes a few weeks, sometimes 150 days or even more. He believes that investors might become impatient during this time because nothing is happening regarding price changes, and they may be bored and anxious.
Parabolic Uptrend
Once Bitcoin breaks out from the re-accumulation range, it embarks on an accelerated growth trajectory as bullish sentiments set in. According to the analysis, historically, this phase has lasted over a year. However, Rekt Capital suggested that this timeframe could be significantly shortened with the potential for an accelerated cycle in the current market.
It’s worth noting that the change in this timeframe can be partially deduced from the recent Bitcoin all-time high. Historically, Bitcoin has tended to reach a record high after the halving event. However, Bitcoin peaked above $73,000 in the current cycle before the event.
The general market impact of the exchange-traded fund (ETF), launched in the US in January, could also change this timeline. Overall, Bitcoin has been consolidating above $67,000, hoping to find a direction to push it towards $68,000. At the time of writing, Bitcoin was trading at $65,328. The trading volume is $44,249,356,127 in the last 24 hours, representing a -18.10 % decrease from one day ago and signaling a recent fall in market activity and the market capitalization is $1,286,069,816,319.
Conclusion
Amidst recent market volatility, Bitcoin’s price dropped to $65,000, facing resistance at $68,000 before the halving event. Crypto analyst Rekt Capital identified three key phases surrounding the halving, offering insights for investors. The initial 18% pre-halving retrace signaled a buying opportunity, followed by a re-accumulation phase characterized by sideways movement. Once Bitcoin breaks free from this range, it typically enters a parabolic uptrend, driven by bullish sentiment. However, the current market suggests a potentially shorter cycle, influenced by recent highs and the US ETF impact. As Bitcoin hovers around $67,000, trading volume decreases, indicating a temporary market pause.
Official Website:
Website: https://www.bitrue.com/
Sign Up: https://www.bitrue.com/user/register
Disclaimer: The views expressed belong exclusively to the author and do not reflect the views of this platform. This platform and its affiliates disclaim any responsibility for the accuracy or suitability of the information provided. It is for informational purposes only and not intended as financial or investment advice.