Crypto analyst Rekt Capital warns that Bitcoin (BTC) is approaching a critical point in its market cycle that has historically led to price corrections.
Danger Zone Approaching
According to Rekt Capital, Bitcoin typically enters a “danger zone” 2 to 4 weeks before the halving event, when miners’ BTC rewards are halved. This zone is known for its potential for price retracements.
“This is a historical danger zone where Bitcoin could potentially local top in its previous rally phase before experiencing its pre-halving retrace,” Rekt Capital said.
Pre-Halving Rally and Potential Dip
Despite being halfway through the pre-halving rally, Rekt Capital notes that a 4% dip is still possible. He cites previous pre-halving rallies that have experienced similar downward wicks and periods of reaccumulation.
Halving Timeline
The halving is expected to occur in mid-April. As of this writing, BTC is trading at $69,572.
Caution Advised
Rekt Capital emphasizes that investors should exercise caution and conduct their own research before making any investment decisions.
