A widely followed crypto analyst is warning of an impending Bitcoin (BTC) correction based on historical market cycles.
Pseudonymous crypto trader Rekt Capital tells are 424,500 followers on the social media platform
The trader says that historically, Bitcoin has suffered severely corrected in the days leading up to the halving, when miners’ rewards are halved. He estimates that the next halving will take place on April 15.
“Within two days [from March 17th]Bitcoin will officially enter the ‘danger zone’ (orange) where historic pre-halving retracements have begun. Historically, Bitcoin has performed pre-halving retracements 14 to 28 days before the halving.
In 2020, this backlash was -20% deep.
In 2016, this backlash was -40% deep.
[As of March 17th]BTC is 30 days away from the halving and has retreated -11% [last] week.”
According to the trader, Bitcoin could do that dive to as low as $40,000, based on BTC’s price action during the 2016 and 2020 market cycles.
‘20% from here [$65,348] would be interesting. That would be about $13,000 on the downside, or a 30% pullback would be even deeper than that. It would take us down about $21,000 from current levels. And that’s pretty crazy to think that we can still reach $44,000.
Although Bitcoin could witness a deep pullback, the analyst believes say that the retracement will likely be a blip in the grand scheme of things.
“We are there (green circle). And if you can’t really see the recent dip, that’s exactly the point of this post.”
Bitcoin is trading at $65,689 at the time of writing, down almost 3% in the past 24 hours.
Don’t miss a beat – Subscribe to receive email alerts straight to your inbox
Check price action
follow us on Tweet, Facebook And Telegram
Surf to the Daily Hodl mix
Generated image: DALLE3