Analyst Predicts Bitcoin's Upcoming 'Pullback'; Urges Investors to Remain Hopeful
Summary:
Renowned trader and analyst Rekt Capital projects that Bitcoin (BTC) is due a "retraction" around its next block subsidy halving. Bitcoin has remained relatively stable, facing resistance at the $52,000 mark. Despite the plateau, experienced market commentators remain hopeful. Rekt Capital identifies patterns in BTC's trends, predicting BTC will break through resistance, retest as support and then continue its upward trend, just like previous cycles. Bitcoin's current valuation, fluctuating between $50.6k and $53k, has stirred questions among some traders and analysts. The article strongly advises readers to conduct their own research before making any investment or trading actions as these come with inherent risks.
Bitcoin (BTC) is projected to experience a "retraction" around the time of its next block subsidy halving, although the exact timing is uncertain. On Feb. 20, renowned trader and analyst Rekt Capital made a prediction in a recent YouTube video, forecasting Bitcoin’s price behaviour to emulate the bull markets of 2016 and 2020.
Bitcoin's trajectory has remained relatively static for more than a week, encountering resistance at the $52,000 mark. This stagnant movement has had a negative impact on market sentiment and the value of alternative cryptocurrencies, although experienced market commentators remain hopeful.
Rekt Capital examined prior bull markets, identifying key stages recurrent in both. He detailed, "Historically, a reversal in a macro downtrend always precedes an increase leading into the halving. After that, we see a retraction before the halving, followed by a post-halving period of re-amassing, culminating in a parabolic increase toward new record highs.”
He showed a diagram where BTC/USD breaks its initial declining trend line, only to be restrained by a resistance zone earlier created by it. The stage that is yet to occur in 2024 is the "pre-halving pullback" phase, where it breaks through and then retests as support.
Rekt Capital expressed, "In this cycle, we're going to see the same thing.” For the pre-halving retraction, the critical area lies at approximately $45,000, according to data from Cointelegraph Markets Pro and TradingView.
He asked, "Will we retest this resistance this month in the pre-halving period? It's something we've never managed to do in the previous pre-halving periods." Rekt Capital had indicated earlier that BTC/USD was fully into its pre-halving ascend, adding now that the significant price events were manifesting at a faster rate than before.
Regarding the current price trends, some see no cause for pessimism about the market despite Bitcoin's flat performance. Caleb Franzen, the founder of research platform Cubic Analytics, informed his X (formerly Twitter) followers on Feb. 22, "Bitcoin is currently valued the same as it was a week ago. It has been oscillating between $50.6k and $53k for the past week with the lowest daily close being $51.6k (which is its current value). I can't comprehend why there's panic or why bearish traders are declaring victory”.
Joining the discussion, analyst Matthew Hyland generally concurred with Franzen while highlighting the importance of the 0.618 Fibonacci retracement level from all-time highs just above $48,000. He added a caveat, "If the $49k level fails, we'll need to reconsider; but consolidation in an uptrend usually leads to the continuation of that uptrend".
This article doesn't provide investment advice. All investments and trading actions carry risks; readers are recommended to do their own research before making decisions.
Published At
2/22/2024 11:21:38 AM
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