Two-Week Window for Bargain Bitcoin Purchases Predicted Ahead of Pre-Halving Rally
Summary:
Crypto trader Rekt Capital suggests a potential two-week window for investors to buy Bitcoin at lower prices before a pre-halving rally commences in February. Rekt outlines five stages in Bitcoin halving trends, predicting another significant pullback shortly. The predicted pattern follows an initial pre-halving rally and subsequent sell-off, leading to a mostly stagnant period followed by a parabolic uptrend where Bitcoin experiences accelerated growth. However, some analysts argue halving events are becoming less relevant as price determinants, pointing to liquidity as a more integral factor for Bitcoin's price in 2024.
Renowned crypto trader Rekt Capital has alerted Bitcoin (BTC) investors of a possible two-week opportunity to purchase Bitcoin at a reduced price before an anticipated pre-halving rally commences in February. On January 29, Rekt, who uses pseudonyms, outlined the sequential stages that characterize market trends around Bitcoin halvings to his 349,000 followers. According to Rekt, the price plunges often observed before Bitcoin halvings typically yield high returns for investors, and the upcoming 2024 Bitcoin halving may follow suit.
The halving process, expected to occur in April, involves halving the mining rewards for Bitcoin miners. This is usually considered a positive trigger for Bitcoin pricing. Rekt pointed out an 18% set back in Bitcoin during January, hinting at another significant pullback in the next two weeks. He suggests this could be one of the last chances for investors to purchase Bitcoin at a low price before the halving.
Subsequently, Bitcoin usually transitions into a stage that Rekt identifies as the "pre-halving rally." This phase, which occurs about 60 days prior to the halving event, is often characterized by short-term traders purchasing Bitcoin in anticipation of the halving event and selling out when it occurs. This buying activity fuels a pre-halving rally, leading to a subsequent drop in Bitcoin's value before the halving event.
This is often followed by the "pre-halving retrace" occurring one to three weeks to the halving. The impact of this phase was evident in a 38% price dip in 2016 and a 20% retraction in 2020. Post-halving, Rekt depicts a period of predominantly static price activity that puts off many investors due to uninspiring price action.
Following this stagnant phase, Bitcoin enters the "parabolic uptrend" where it undergoes phases of rapid growth after a period of idle value and widespread acquisition. While Rekt's analysis is based on the halving as the critical determinant of Bitcoin's price activity, not all agree with this position as several experts argue that halving is becoming increasingly irrelevant as a price determinant.
Speaking at a panel discussion, Swan Bitcoin's chief investment officer Ralph Zagury stated that liquidity, not halving, will play a more significant role in influencing Bitcoin's price in 2024, stating that market flows are the real driving force behind the market, reducing the halving event's potential to impact prices.
Published At
1/30/2024 7:20:55 AM
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