Well-known cryptocurrency analyst and trader Rekt Capital has revealed an intriguing finding regarding the price development of Bitcoin in a recent analysis. His groundbreaking forecast reveals that the crypto asset is reflective of the historical price action that took place during a bull cycle eight years ago.
Similar historical price trend in Bitcoin
Rekt Capital claimed this was the way Bitcoin repeats a past price trend from a cycle 8 years ago is astonishing. Given the magnitude of the 2016 bull cycle, BTC could be poised for significant growth in the coming months. During the 2016 bull cycle, BTC witnessed a remarkable growth of almost 3,000%, following the conclusion of the Bitcoin Halving event.
Moving on, Rekt Capital drew attention to his previous post on Bitcoin’s post-Halving movement, which he called the Post-Halving Danger Zone. According to the analyst, the digital asset is currently in this zone.
He further noted that Bitcoin has moved into the negative below the current Re-accumulation Range Low, repeating the pattern that started in 2016. In 2016, the movement below the reaccumulation range was about 17%. However, this difference will have decreased by 6% in 2024.
Rekt Capital previously confirmed that in 2016, around 21 days after the halving, Bitcoin experienced a prolonged decline of -11% before turning to the upside.
So if there were downside volatility in this cycle around the Re-Accumulation Range Low, the 2016 data suggests that BTC could turn positive in the next 10 days given the post time.
Although the “Danger Zone” after the halving ends in the coming days, especially four days from now, Rekt Capital stated that data from 2016 proves that there may be some negative volatility at the $60,600 Range Low in the meantime.
Pre-halving danger zone for BTC
Notably, the expert also identified a danger zone before the event, where previous pre-halving retracements have always started. According to Rekt Capital, pre-Halving retracements have historically been observed in Bitcoin between 14 and 28 days before the event, and this cycle has been no different thus far..
He stated that Bitcoin saw its first pre-Halving retrace of -18% about 30 days before the Halving, while in 2016 the pre-Halving retrace started 28 days before the event, suggesting that BTC could move in the same direction as that of 2016. As a result, Rekt Capital is confident that a potential danger zone may arise after the halving.
However, the retracement from the current all-time high now appears to be deeper and longer than previous retracements, which span several weeks. So the expert predicted a high probability that Bitcoin prices have bottomed out.
At the time of writing, Bitcoin’s price was experiencing positive sentiment, rising 0.43% over the day to $64,126. Both the market capitalization and trading volume increased by 0.50% and 24.43% respectively over the past 24 hours.
Featured image from iStock, chart from Tradingview.com
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