A closely watched crypto analyst thinks Bitcoin (BTC) could start its pre-halving rally as early as next week.
Pseudonymous analyst Rekt Capital tells his 395,800 followers on social media platform X that Bitcoin is about to enter its pre-halving rally phase, based on historical data.
According to the analyst, historical data suggests that Bitcoin’s price action tends to continue five phases based on its halving, an event where the issuance of new BTC to miners is halved.
With the next halving scheduled for April, Rekt Capital believes Bitcoin is now transitioning from its pre-halving rebound to its pre-halving rally.
“If history is any indication, Bitcoin should start its pre-halving rally as early as next week.”
Looking at the trader’s chart, he seems to suggest that BTC will see another round of reaccumulation after the pre-halving rally before entering a parabolic uptrend that could see Bitcoin soar well above $90,000 .
For now, Rekt Capital thinks Bitcoin is in a good position to break above its immediate resistance around $43,786, after hitting the level several times in the past two months.
“Rejected from the range high (red) last week and forming an upward fuse and a new lower high.
However, despite rejecting last week’s range-high (RH), BTC is looking to revisit the RH this week.
If this force continues, you might think that RV resistance is weakening.”
The analyst also notes that Bitcoin appears to be gaining bullish momentum after BTC’s relative strength index (RSI) indicator broke above its diagonal resistance, negating a potential bearish divergence signal on the weekly chart.
A bearish divergence typically occurs when the RSI momentum indicator enters a downtrend while the asset’s price continues to rise. The signal suggests a bearish reversal is in sight, while bullish momentum is waning.
Says Rekt Kapitaal,
“The new weekly close is in and the Bitcoin RSI has successfully broken its downtrend (red), indicating that the bearish divergence has been invalidated.”
At the time of writing, BTC is worth $43,161, up 1.22% in the past 24 hours.
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