As the global crypto market navigates the ebbs and flows of volatile waters, the Bitcoin halving event draws the attention of traders, analysts, and investors worldwide. The pre-halving period, symbolized as an orange-shaded area in Rekt Capital’s analytical chart, is a crucial time frame leading up to Bitcoin’s halving event. Market speculations are rife during this phase, primarily due to anticipation of a supply reduction resulting from the halving.
Following this anticipation, a significant price rally often ensues—called the “pre-halving rally.” Marked in light blue, this uptick in price can be attributed to heightened demand in the face of a looming supply cut.
However, as history and Rekt Capital’s chart suggest, what goes up must come down. The “pre-halving retrace,” represented by dark blue circles, indicates a period of price correction following the initial rally. Traders might be seizing the opportunity to pocket profits or recalibrating their strategies in light of the upcoming halving.
Once the halving event unfolds, Bitcoin encounters what’s known as the “post-halving resistance,” depicted by red horizontal lines. These are critical price ceilings, acting as barriers Bitcoin initially struggles to overcome. Yet, once surpassed, these resistance levels can usher in a significant upward trajectory.
Perhaps one of the most exhilarating phases post-halving is the “parabola.” Illustrated by a green curved line, this phase sees Bitcoin’s price skyrocketing in an almost exponential manner. A cocktail of reduced supply, increased demand, and bolstered investor confidence typically fuels this surge.
According to Rekt Capital, potential deeper retracements within 168 days preceding the halving could be golden opportunities for savvy investors. These periods might offer an outsized Return on Investment (ROI).
#BTC
— Rekt Capital (@rektcapital) October 31, 2023
Any deeper retrace that occurs over the next 168 days before the Halving will represent an opportunity offering outsized ROI for the next few years$BTC #Crypto #bitcoin pic.twitter.com/rGv36r15cR
As of now, Bitcoin’s bull market progress stands at 26.3%. With a price tag of $34,400.07 and a 24-hour trading volume nearing $17 billion, Bitcoin remains the undisputed king of cryptocurrencies, holding the top spot on CoinMarketCap. Despite a marginal dip of 0.24% in the past day, its staggering market cap of approximately $672 billion underscores its unwavering dominance.
