A widely followed crypto analyst believes that Bitcoin (BTC) is just starting a pre-halving phase and may follow a historical pattern for the next two months.
Pseudonymous crypto trader Rekt Capital tells his 396,800 followers on the social media platform X that Bitcoin could dip weeks ahead of the April halving event after putting up gains.
He says Bitcoin may temporarily rise above a key diagonal resistance trendline, currently around $46,000, but stay below it on the monthly chart, based on its historical price pattern.
Bitcoin’s halving event happens every four years when miners’ rewards are cut in half.
Says Rekt Capital,
“How do we reconcile the following historical tendencies?
– The pre-halving rally phase is beginning.
– But historically, BTC fails to break beyond the macro diagonal before the halving.
– And also historically fails to break its four-year cycle resistance (~$46,000 in this cycle).
Keeping all these things in mind, here’s how Bitcoin could reconcile all of these tendencies:
+ Bitcoin would need to produce limited upside in its pre-halving rally phase.
+ This upside would end up as an upside wick at the end of February, like it did last month and also in 2019, for example.
+ Then perhaps form another range at highs in March, enabling altcoin rallies to take center stage.
+ Then finally pull back for a pre-halving retrace a few weeks before the halving event itself.
This could be the path Bitcoin takes to upside wick beyond the macro diagonal but remain below it in terms of end-of-month monthly candle closes in this slowly ending pre-halving period.”
Bitcoin is trading for $47,387 at time of writing, up 2.80% in the last 24 hours.
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Source: https://dailyhodl.com/2024/02/10/bitcoin-pre-halving-rally-phase-is-just-getting-started-according-to-crypto-analyst-heres-his-outlook/