The Bitcoin market is currently abuzz with anticipation as investors eagerly await the culmination of the pre-halving rally, as per Rekt Capital, an analyst. This phase, known for its historical significance in Bitcoin’s price cycles, has garnered attention for its potential to drive prices to new heights. Analyzing past trends, experts suggest that we are currently halfway through this rally, a period often marked by a local top preceding a correction of 20-40%.
As highlighted in their YouTube channel, the halving event approaches, which is approximately 45 days away, and market participants are keenly observing the dynamics at play. Historically, the danger zone for a potential local top falls around 28 days before the halving.
However, with the current timeline, there are still a few more weeks before the rally can continue its upward trajectory. It’s worth noting that while being halfway through the rally suggests further potential for price increases, it doesn’t preclude the possibility of dips and consolidation phases.
One aspect drawing attention is the potential for a pre-halving rally retrace, a phenomenon observed in previous cycles. Typically ranging between 10-15%, these retraces are considered a normal part of a bullish trend, often paving the way for significant price action towards the upside.
Key indicators like the P Cycle moving averages, particularly the 350-day moving average multiplied by two, have historically acted as crucial resistance levels during bull markets. Currently hovering around $66k, a potential rejection from this level could trigger a pre-halving rally retrace, followed by a shallow dipping and reaccumulation phase before resuming the upward trend.
Despite being below the moving average, there’s still optimism for further upside potential in the Bitcoin market during this phase. Previous pre-halving rallies have seen significant price increases, leaving room for growth from the current levels.
The period from 28 days before the halving to 14 days before is identified as a critical juncture, with a potential resistance level of around $66,000. Breaking above this resistance could either lead to new all-time highs or a rejection from the moving average, influencing the subsequent market direction.
In the current scenario, Bitcoin’s price action is below the crucial $66,000 green moving average, acting as a gatekeeper for reaching new all-time highs, currently trading at $67,728.12. While rejections from this level can be shallow, the possibility of a pullback looms, possibly triggered by resistance from the PCycle moving average.
As investors navigate through the pre-halving rally phase, it’s essential to appreciate the market’s potential while remaining mindful of the likelihood of future pullbacks. In essence, the moving averages serve as vital indicators, guiding market sentiment and influencing decision-making processes.
