Crypto analyst Rekt Capital warns that Bitcoin (BTC) could drop further before the upcoming halving event, where miners’ rewards are halved.
Danger Zone
Bitcoin has entered a “danger zone” where it has historically corrected between 20% and 40% before halving events. The current pullback of nearly 18% since last week falls within this range.
Similarities to 2016 Cycle
Rekt Capital draws parallels between the current price pattern and the 2016 cycle, suggesting a potential deeper dip before the halving. In 2016, Bitcoin experienced a pre-halving retrace 28 days before the event, with an initial long downside wick. A similar pattern is emerging now.
Bull Market Peak Prediction
The analyst also predicts a potential bull market peak for Bitcoin. Based on historical data, Bitcoin tends to reach its peak 266-315 days after breaking its previous all-time high. This could occur in late November 2024 or late January 2025.
However, Rekt Capital notes that Bitcoin has historically taken longer to reach peaks in each cycle, which could push the current peak to December 2024 or mid-February 2025.
Current Price
At the time of writing, Bitcoin is trading at $65,410, down over 3% in the past 24 hours.
