Crypto analyst Rekt Capital has issued a warning about a potential Bitcoin (BTC) correction based on historical market cycles.
Danger Zone Imminent
According to Rekt Capital, Bitcoin will enter the “danger zone” in two days, where it has historically experienced significant corrections. This zone typically occurs 14-28 days before the halving event, when miners’ rewards are cut in half. The next halving is expected on April 15th.
Historical Precedents
In the past, Bitcoin has undergone sharp corrections in the lead-up to halving events. In 2020, the retracement was 20%, while in 2016, it was 40%. As of March 17th, BTC has pulled back 11% in the past week, 30 days before the halving.
Potential Dip
Rekt Capital suggests that Bitcoin could dip as low as the $40,000 range, based on price action in previous market cycles. A 20% correction from the current price of $65,348 would result in a decline of $13,000, while a 30% retracement would bring it down to $44,000.
Long-Term Perspective
Despite the potential correction, Rekt Capital believes it will be a temporary setback in the overall bullish trend. “If you can’t really see the recent dip, that’s precisely the point of this post,” he said.
Bitcoin is currently trading at $65,689, down nearly 3% in the last 24 hours.
