A renowned crypto analyst predicts that Bitcoin is approaching a market phase that has historically triggered significant price drops.
The “Danger Zone”
According to Rekt Capital, Bitcoin is just a week away from entering a “theoretical technical danger zone.” This period typically precedes a halving event, when miner rewards are reduced by half. The next halving is scheduled for about 35 days from now.
Historical Precedents
In the past two cycles, Bitcoin has experienced corrections two to four weeks before halving events. In 2020, a 20% pullback occurred two weeks before the halving, while in 2016, a 29% drop happened 28 days prior.
Potential for a 30% Pullback
Since the current cycle has not yet seen a 30% pullback, Rekt Capital believes it is possible before the halving. He suggests that a 20-25% correction could be on the horizon, with a worst-case scenario of 30%.
Bitcoin’s Current Price
At the time of writing, Bitcoin is trading at $71,882, slightly down from the previous 24 hours.
