A widely followed crypto trader warns that Bitcoin (BTC) could witness a dramatic correction around the next halving in 2024.
Crypto analyst Rekt Capital tells are 370,300 followers on the social media platform
The next halving is expected in April 2024, when miners’ rewards will be halved. A 40% drop from Bitcoin’s current value is around $22,500, although BTC’s price could be much higher by April next year.
“Bitcoin could potentially see a pullback around a halving of up to 40%. We will focus specifically on this [2016] retracement period before the halving.
This is where Bitcoin consolidated for a significant amount of time in preparation for this light blue pre-halving rally to new yearly highs, and after hitting those new yearly highs, Bitcoin actually returned to the minus 40% range.
A fair amount of that blowback came in the form of a down fuse and if you think about this down fuse, which here retested the top of this pre-accumulation range, but happened just a handful of weeks before the halving event. discount on Bitcoin.
40% is not always the case, but this is probably the worst case scenario for Bitcoin. So for example, if you see a range like this in this cycle, you can bet we’ll probably see a retest of that range.”
Bitcoin is trading at $37,341 at the time of writing.
Don’t miss a beat – Subscribe to receive email alerts straight to your inbox
Check price action
follow us on Tweet, Facebook And Telegram
Surf to the Daily Hodl mix
Featured image: Shutterstock/sweet kiwi/Chuenmanuse