Bitcoin Nears Pre-Halving “Danger Zone” Despite Bullish Sentiments from Crypto CEOs

Bitcoin Nears Pre-Halving “Danger Zone” Despite Bullish Sentiments from Crypto CEOs

Bitcoin News
March 18, 2024 by Diana Ambolis
236
Historically, Bitcoin Tends to Decline in the Weeks Leading Up to the Halving and May Repeat Such Behavior in the Coming Week Bitcoin is edging closer to what analysts dub as the pre-halving “danger zone,” a period historically marked by price dips leading up to the halving event, according to insights shared by analyst Rekt
bitcoin

Historically, Bitcoin Tends to Decline in the Weeks Leading Up to the Halving and May Repeat Such Behavior in the Coming Week

Bitcoin is edging closer to what analysts dub as the pre-halving “danger zone,” a period historically marked by price dips leading up to the halving event, according to insights shared by analyst Rekt Capital.

Rekt Capital highlighted in a March 17 post on X that Bitcoin typically experiences a downturn within the 14 to 28 days preceding its halving. During the 2016 halving, Bitcoin witnessed a 40% decline during this period, followed by a 20% drop in 2020.

Earlier in January, Rekt Capital predicted a “pre-halving rally” about 60 days before the halving, followed by a “pre-halving retrace” roughly one to three weeks prior to the event. This forecast proved accurate as Bitcoin surged in mid-February, surpassing its previous all-time high from the previous cycle and reaching $68,990.

Also, read- Bitcoin’s Unexpected 7% Pullback Results in $660 Million in Liquidations within a Day

With the next halving projected to occur in about 33 days, on April 20, Bitcoin has already seen an 8.5% decrease from its recent all-time high of $73,835 on March 14, currently trading at $67,537.

Despite these fluctuations, optimism surrounding Bitcoin remains strong among industry leaders. Binance CEO Richard Teng expressed confidence during an event in Bangkok on March 17, predicting Bitcoin’s continued ascent beyond $80,000 by year-end. Teng attributed this bullish outlook to institutional investors’ increasing allocations to Bitcoin, facilitated by new U.S. exchange-traded funds (ETFs) holding approximately $57 billion.

Similarly, Kris Marszalek, the co-founder and CEO of Crypto.com, characterized Bitcoin’s recent price correction as a healthy adjustment, alleviating accumulated leverage. Marszalek emphasized that Bitcoin’s current trajectory resembles the upward trend witnessed in late 2020 and early 2021, where it surged from under $20,000 to over $60,000 in just over three months. He anticipated a gradual increase in Bitcoin’s price, advocating for a long-term holding approach given its potential as a multi-decade asset.