April 19, 2024
Bitcoin Pre-Halving Retracement Anticipation Amidst Rangebound Movement
Bitcoin Halving

Bitcoin Pre-Halving Retracement Anticipation Amidst Rangebound Movement

Bitcoin, denoted as BTCUSD, is poised for a retracement around its upcoming block subsidy halving, although the timing remains uncertain.

In his most recent YouTube update on February 20th, the renowned trader and analyst, Rekt Capital, forecasted Bitcoin’s price trajectory mirroring the bull runs of 2016 and 2020.

A Bitcoin analyst contemplates the timing of a “pre-halving retracement” in 2024.

Bitcoin has been trading within a narrow range for over a week, with $52,000 serving as a resistance level.

While this has dampened sentiment and altcoin performance, experienced market observers maintain their optimism.

By examining previous instances of reaching all-time highs, Rekt Capital identified common phases in both bull market scenarios.

“In the past, a break in the macro downtrend always precedes an upswing leading into the halving,” he elaborated.

“We then witness a pre-halving retracement followed by a post-halving reaccumulation period, eventually leading to a parabolic price surge towards new all-time highs.”

An accompanying chart depicted BTCUSD breaking its initial downward trend line, only to encounter resistance from a previously established zone. The phase of breaking through and subsequently retesting as support—the “pre-halving retracement” phase—is yet to manifest in 2024.

“We anticipate a similar pattern in this cycle as well,” Rekt Capital added.

Regarding the pre-halving pullback, attention is drawn to the $45,000 region, as confirmed by TradingView data.

“The question remains, ‘Will we revisit this resistance this month during the pre-halving period?’ because historically, we have failed to do so during this phase,” he questioned.

Previously, Rekt Capital determined that BTCUSD had entered its pre-halving upward movement, now observing that critical price events are unfolding at a faster pace in this cycle compared to previous ones.

Sub-$50,000 levels for Bitcoin are under scrutiny.

Commenting on the current price action, others see little reason to adopt a bearish stance amidst the sideways movement.

“Bitcoin’s price remains unchanged from where it stood 7 days ago,” remarked Caleb Franzen, founder of the research platform Cubic Analytics, to subscribers on X on February 22nd.

“Fluctuating between $50.6k & $53k for the past 7 days, with the lowest daily close at $51.6k (which is where it currently trades). I fail to comprehend the panic or the bearish victory laps.”

In response, analyst Matthew Hyland broadly concurred, emphasizing the significance of the 0.618 Fibonacci retracement level from the all-time highs, just above $48,000.

“Unless $49k is breached, the outlook remains unchanged, but consolidation within an uptrend suggests a continuation of the upward trend,” he cautioned.

This article does not offer investment advice or recommendations. Every investment or trading decision involves risk, and readers are encouraged to conduct their own research before making any decisions.

Image by MichaelWuensch from Pixabay

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