Benzinga - by Murtuza Merchant, Benzinga Staff Writer.
Pseudonymous cryptocurrency analyst Rekt Capital reiterated his concept of a “danger zone”, cautioning that the imminent Bitcoin (CRYPTO: BTC) halving may lead to price volatility.
What Happened: “We’ve been talking about this danger zone for a while,” the pseudonymous analyst said in his latest YouTube video, adding that “we’ve seen retracement in that danger zone. And, in fact, we are in the thick of this danger zone, we’ve been in this danger zone for a month or so. And we’ve already seen two pre-halving retraces.”
Also Read: Crypto Market Cap Skyrockets 64.5% In Q1, Spot Trading Hits Multi-Year Highs
Historical Context: Pullback Before The Surge?
Rekt Capital draws on historical trends, highlighting a pattern of price slowdowns and pullbacks leading up to the halving event.
“You can see that around the halving is when we typically see slowing down in the momentum for a little while, pulling back before embarking on the parabolic upside,” he explains. “And that’s been the case in each cycle thus far and it will probably be the case in this cycle as well.”
Potential Buying Opportunity On The Horizon?
While acknowledging the current market volatility, Rekt Capital identified a potential silver lining for investors.
“Anything getting closer to a 20% pullback is fantastic for Bitcoin because that’s typically when we tend to see limited downside occur and that’s where we tend to typically also see extreme fear which tends to precede financial opportunity,” he says.
“So we are getting closer to that point, we are getting closer to that reversal point. But we don’t quite know exactly where the bottom is.”
What’s Next: With the Bitcoin halving poised to significantly impact the cryptocurrency market, Benzinga’s upcoming Future of Digital Assets event on Nov. 19 promises to be a valuable resource for investors and enthusiasts alike.
Read Next: USDT To Deploy On TON Blockchain Amid Telegram Co-Founder Keynote Speech
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