Benzinga - by Khyathi Dalal, Benzinga Staff Writer.
Heavily-followed cryptocurrency analyst Rekt Capital anticipates a potential market shift, as Bitcoin moves between different phases before its fourth halving event for Bitcoin (CRYPTO: BTC), scheduled for April 19.
What Happened: In a tweet on April 4, the pseudonymous analyst pointed to three phases of the Bitcoin halving: the final pre-halving retrace, re-accumulation and the parabolic uptrend.
Bitcoin is currently two weeks away from the halving and has pulled back by 18% over the past couple of weeks. In 2016, this pre-halving retrace was -38% and lasted three to four days, while in 2020 it was -20% and continued for 56 days.
The pre-halving retrace is mainly to offer one “final bargain-buying opportunity,” form the range low of the future re-accumulation range and set up the re-accumulation phase, the analyst stated.
This phase can last multiple weeks and even up to 150 days, and investors may face boredom, impatience and disappointment due to a lack of major results in their Bitcoin investments.
Finally, the parabolic uptrend lasts just over a year but may be cut in half if the current cycle is an accelerated one, according to Rekt Capital.
Also Read: ‘Forget Bitcoin Price Targets’: Crypto Expert Says 30% Of Cycle Top Metrics Are ‘High Risk’
Why It Matters: Historically, the Bitcoin Halving event has had a significant impact on Bitcoin's price and cuts the reward for mining new blocks.
Heavily-followed trader and investor Crypto Jelle said the halving’s impact will make the wait worth it.
Bart is back to fulltime chart painting employment – with the halving right around the corner.Flashbacks to 2020.
No matter how dull the market gets in the coming weeks — the wait will be worth it.#Bitcoin pic.twitter.com/VnHmLa5RwO
— Jelle (@CryptoJelleNL) April 4, 2024
Another trader, River, states in his post on X that Bitcoin prices have performed well in the one and a half years ahead of halving.
Bitcoin is down around 3.6% on the week, trading at $67,880 at the time of writing.
What’s Next: The influence of Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.
Read Next: Top Crypto Trader Sees ‘Tremendous Buying Opportunities’ In Altcoins, Shares His Top 10 Picks
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