A popular crypto analyst believes that Bitcoin’s (BTC) halving rally is still in its early stages.
Pseudonymous crypto trader Rekt Capital tells According to its 57,300 YouTube subscribers, based on historical patterns, Bitcoin’s pre-halving rally could last weeks longer.
The Bitcoin halving is expected to take place in April, when rewards for BTC miners will be halved.
Says Rekt Capital,
“The key takeaway here is that this pre-halving rally has technically only just begun, and it’s a bit too early to talk about a final pre-halving retrace. This pre-halving retrace usually takes place a few weeks before the halving. And so that means we may still have a few more weeks to go, whether it hangs around the highs for a few more weeks, reaccumulates at the highs before the retest or the retrace, or maybe we see a little bit more limited upside potential before that backlash is happening.”
The trader thinks a conservative estimate for a Bitcoin correction before the halving could be a drop between 15% and 20%.
“Generally speaking, we should see at least two to three weeks more of an uptrend, three weeks in general – so whether that’s an uptrend or a reaccumulation at its highest, whether it’s also a limited uptrend. Yet we are not yet in the final retrace phase before the halving. And speaking of retracement periods, in 2020 this was a 19% retrace…
But in 2016 we saw… 29% if we only take into account the candle bodies. So anything between 19% and 30% is something we can expect at this point in the cycle.
And then this cycle itself, you might want to be a little more conservative and just say 15% or 20%. Whatever this retrace ends up being, it will be the last retrace before the halving, and it will be the last chance to buy bargains before we move into this post-halving reaccumulation period, which will happen after the halving and will last quite a while .”
Bitcoin is trading at $50,767 at the time of writing, down slightly in the past 24 hours.
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