Bitcoin is now hovering around the $70,000 threshold, after a remarkable recovery it witnessed a few days ago. Recent momentum is making crypto enthusiasts less pessimistic about digital asset growth ahead of the crisis halving event. With the highly anticipated Bitcoin Halving fast approaching, Rekt Capital, a well-known cryptocurrency analyst and enthusiast, has offered its market insights to map out three different phases of the event for investors.
3 different aspects of the Bitcoin halving
Rekt Capital’s analysis goes into this in more detail BitcoinThe move will take place before and after the halving, which is expected to happen this month. In the seven days leading up to the incident, the crypto analyst underlined three phases that needed to be observed for a successful outcome.
These three phases include the final retrace before the halving, the reaccumulation phase, and the parabolic uptrend phase. Rekt Capital highlighted the first aspect, noting that the pre-halving retrace is documented in the books and has already manifested.
During this period, Bitcoin experienced a pullback of 18% compared to the retracement of 38% and 19% in 2016 and 2020 respectively. The expert believes that the closed Retrace before the halving was the last chance to buy a deal during the phase before the halving.
Following the conclusion of the retrace, Rekt Capital has confirmed that the development has laid the foundation for the Re-accumulation range. It is important to note that the above range takes place a few weeks before the halving, and ends with a breakout a few weeks later.
In concrete terms, the period can last several weeks and a maximum of 150 days or five months. Given the manifestation of the range, sideways movement through the halving and beyond is BTC’s main goal.
The analyst has thus emphasized the need to be patient at this stage, like many investors here become frustrated, bored and disappointed because their Bitcoin investments are not yielding significant returns. As a result, they lose confidence and are shaken out of the market before the event.
The post-halving rally for BTC could be a reflection of the previous trend
As for the parabolic uptrend, Rekt Capital claims that the phase will begin when Bitcoin breaks out of the reaccumulation range. He further stated that the price of BTC tends to grow faster and enters a parabolic upswing during this phase.
According to the expert, this area has typically lasted about a year or a little longer, especially around 385 days in the past. However, with the potentially accelerated cycle currently developing, the period within this bull market cycle could be halved.
Rekt Capital’s key perspectives came amid Bitcoin showing strength to regain its current all-time high of $73,000. BTC has managed to post gains of over 6% in recent days.
It recovered to the $70,000 level after hitting a low of $67,000 on Wednesday and is approaching $71,000. At the time of writing, BTC was trading at $70,854, marking an increase of over 6% in the past week.
The market capitalization is up 1% and trading volume has plummeted by more than 21% in the past day. Given the current trend in the coin market, BTC could be in a position to make even bigger gains in the coming months.
Featured image from iStock, chart from Tradingview.com
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