As the highly anticipated Bitcoin halving event draws closer, crypto analyst Rekt Capital has issued a warning, suggesting that Bitcoin is on the brink of entering the “Danger Zone” in the next two days. However, historical data suggests that Bitcoin may undergo substantial pullbacks in the coming weeks.
Meanwhile, the impending scenario has sparked concerns among investors and analysts alike, as Bitcoin price recently fell back to the $64,533 market after hitting its news ATH.
Bitcoin’s Pre-Halving Retraces
In a recent tweet post, crypto analyst Rekt Capital delves into Bitcoin’s historical behavior before previous halving events, shedding light on a concerning pattern.
Historically, Bitcoin has exhibited a pattern of pre-halving retraces, occurring approximately 14-28 days before each halving. These retracements have often marked periods of significant price corrections for Bitcoin, serving as a precursor to the halving event itself.
Rekt capital highlights previous instances of pre-halving retraces as key reference points. In 2020, for instance, Bitcoin experienced a retracement of approximately 20%, signaling a significant correction before the halving.
Similarly, during the 2016 halving, Bitcoin faced a more substantial retracement of around 40%, reflecting heightened volatility and uncertainty in the market.
Bitcoin Current Scenario
As Bitcoin stands just 32 days away from the upcoming halving event, recent market movements have intensified concerns. Bitcoin witnessed a pullback of -11% last week alone and currently trading at $68,533.
Looking Ahead
Rekt Capital’s warning of the impending “Danger Zone” for Bitcoin underscores the significance of historical precedents in understanding market behavior. Whether Bitcoin follows historical patterns or charts a new course remains to be seen, but one thing is certain: the coming days will be crucial for Bitcoin and the broader cryptocurrency market.
