Bitcoin has caught the attention of investors again. Some analysts believe it could see a significant price drop before the next halving event.
Historical Patterns
Analyst Rekt Capital has studied past Bitcoin cycles. In 2016 and 2020, Bitcoin experienced retracements of around 30% and 20%, respectively. This suggests that a more substantial downturn of around 40% is possible.
Retracement as a Buying Opportunity
Such a retracement could be a crucial time for investors to buy Bitcoin, similar to what happened before previous halving events.
Resistance and Support Levels
Key price levels to watch include former resistance levels that have become new support levels. However, there is also strong resistance at higher levels, which has led to price rejections.
Pre-Halving Retrace
Before previous halving events, Bitcoin has typically experienced a retracement. This has historically been a good time for investors to buy, as prices have risen significantly after the halving.
Market Outlook
Investors are closely watching the market for signs of the anticipated retracement. With the halving event approaching, this could be the last significant buying opportunity before the next rally.
