Rekt Capital, a cryptocurrency expert and enthusiast, has identified a similar pattern between the recent Bitcoin pre-halving retrace and the one that took place in 2020 before the crypto asset witnessed an upsurge to its previous all-time high.
Bitcoin Pullback Is Almost Identical With 2020 Pre-Halving Retrace
Bitcoin, the largest cryptocurrency asset, is presently demonstrating momentum, rising over $70,000 and recovering from a recent downward trend. Following the recovery, Rekt Capital believes that the pullback might be over, citing a similarity to the 2020 pre-halving retrace.
Given the uncertainty of the crypto market, the analyst is not sure if the recent upsurge marks the end of the pre-halving retrace. However, if that is the case, then Bitcoin would have nearly matched the pre-halving correction from 2020.
According to the analyst, the digital asset has recorded a pullback of over 18% in this cycle. Meanwhile, in the 2020 cycle, it retraced by over 19%, suggesting the potential of the asset mirroring the 2020 movement this cycle.
A further dive into the correction made by the analyst reveals that Bitcoin has been trapped inside the Weekly range (black-black) ever since it retraced by over 18%. Both the upside-wicking 2021 peak and the candle-bodied 2021 peak combine to create the weekly range that Rekt Capital has indicated.
Thus, he claims that BTC reclaiming the $69,200 ‘range high’ as support, which has already played out, could signal the conclusion of the recent decline. In addition, this demonstrates that Bitcoin is poised to move over its weekly range and soar higher.
With the 2024 Bitcoin halving drawing closer, the cryptocurrency is having difficulty in reclaiming its most recent peak of $73,000. However, there are rumors that today’s increase could mean the pre-halving decline is coming to an end.
Considered Catalysts For BTC’s Strength This Cycle
As of the time of writing, BTC has rebounded to around $70,806, indicating a daily increase of over 5%. Its market cap and trading volume are also showing strength, rising by 5.49% and 47.82%, respectively, in the past day.
One of the main drivers of Bitcoin’s growth this cycle is thought to have been the approval of spot BTC ETFs in January 2024. With the acceptance of the product, investors now have a convenient way to profit from Bitcoin’s value without actually owning any of it.
Since then, the crypto asset has witnessed increased adoption from industry leaders and a massive inflow of capital, propelling its price as well. The BTC price has increased from $46,000 to a peak of $73,000 since the ETFs were approved by the US Securities and Exchange Commission (SEC).
Another catalyst considered to have impacted the coin’s price is the anticipation surrounding the upcoming Bitcoin Halving set to occur in April. In the past, these kinds of events have led to notable price upticks. Due to this, investors will shift their attention to BTC to position themselves for significant gains following the halving event.
Featured image from iStock, chart from Tradingview.com
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