The past day’s Bitcoin price crash has taken crypto investors by surprise, leading to a complete bleeding day for the industry. While this may have come as a shock to many, some were able to report it in advance. One of these is Rent Capital, which said the decline was in line with Bitcoin’s established halving trend.
An expected crash
Rest Capital’s analysis outlines the trends Bitcoin has been following leading up to the halving months. In 2020, the halving occurred in the month of May and in the month leading up to the rally, the Bitcoin price experienced a decline of approximately 20%.
Over the years, Bitcoin has followed similar patterns to usher in the expected halving and while there has been some deviation this time around, it looks like the digital asset will continue to follow some trends. One of these trends is the price crash before the halving.
As Rekt Capital’s analysis shows, Bitcoin is located exactly in the region where this crash is expected to occur. According to the previous trends, the price fell between 20% and 38% in the month before the halving. Taking this into account, the BTC price could fall by around 25% on average if this trend continues.
The crypto analyst also revealed their target for if Bitcoin follows this trend. The crash is expected to push the BTC price below $40,000. However, if the average stays the same, the price could bottom out above $40,000 before rebounding.
Why this crash matters for Bitcoin
The crash is confirmation that Bitcoin price is following the established pre-halving trend and also confirms the coming bull market. Based on the previous trends, the halving takes place after the crash, after which some upside is seen in the cryptocurrency.
Subsequently, in the months following the halving, a huge accumulation takes place that serves as a harbinger of the bull market. In this case, this accumulation is expected to begin sometime in April 2024 and then continue for a few months.
The crash, as Rekt Capital notes, also serves as the last chance for cryptocurrency investors to get into position at the lowest prices. This is because once the halving is complete and the bull market begins, low prices will be a thing of the past.
At the time of writing, the BTC price is seeing a small recovery from the crash below $63,000. According to CoinMarketCap, I’m trading at $63,500, but down 5.91% on the daily chart and down 12.19% on the weekly chart.
BTC price drops to $62,300 | Source: BTCUSD on Tradingview.com
Featured image of Kaspersky, chart from Tradingview.com
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