Bitcoin‘s trajectory is drawing attention as it approaches a critical juncture known as the pre-halving “danger zone,” with historical data indicating potential price dips, according to analysis from a prominent crypto analyst.
As shared by Rekt Capital in a recent post, Bitcoin is poised to enter this “danger zone” in just two days, a period historically marked by price retracements leading up to its halving. Historical data reveals that in the 14 to 28 days preceding previous halving events, Bitcoin experienced notable declines. For instance, during the 2016 halving, the price plummeted by 40%, followed by a 20% dip in 2020.
Rekt Capital’s earlier prediction of a “pre-halving rally” approximately 60 days before the event, followed by a subsequent “pre-halving retrace” one to three weeks prior, has already materialized. Bitcoin surged in mid-February, surpassing analysts’ expectations by reaching a new all-time high of $68,990 in March, a feat unprecedented in the lead-up to a halving event.
Despite the anticipation surrounding the upcoming halving, Bitcoin’s current price stands at $67,537, representing an 8.5% decline from its March 14 peak. This volatility underscores the uncertainty surrounding Bitcoin’s trajectory in the immediate future.
Amidst this backdrop, industry leaders offer divergent perspectives on Bitcoin’s outlook. Binance CEO Richard Teng remains bullish, predicting that Bitcoin will continue to break records and surpass $80,000 by year-end. Teng attributes this optimism to institutional investors’ significant allocations to Bitcoin, facilitated by new U.S. exchange-traded funds (ETFs) with $57 billion under management.
In contrast, co-founder and CEO Kris Marszalek views Bitcoin’s recent price correction as a healthy development, alleviating leverage accumulation. Marszalek highlights a positive trend reminiscent of Bitcoin’s surge in late 2020 and early 2021, emphasizing the asset’s long-term investment potential. He anticipates a gradual price increase with reduced volatility, emphasizing Bitcoin’s appeal as a long-term asset.
As Bitcoin navigates the pre-halving period amidst market fluctuations, differing perspectives underscore the complex dynamics shaping its trajectory in the coming weeks.
