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As Bitcoin is on the way to enter its pre-halving “danger zone”, Industry CEOs are predicting influential price surges despite historical dips.
Bitcoin (BTC), the big cheese of the crypto world is all set to enter the pre-halving “danger zone” within 2 days. So far, in the weeks preceding the halving date, BTC had entered a retracement phase.
CEOs Prediction on Bitcoin Pre-Halving
Bitcoin is expected to produce a ‘pre-halving’ dip phase within the next week based on its historical trend. Rekt Capital, a crypto analyst, described the historical trend, by comparing the trend with previous halvings in 2016 and 2020.
On March 18, Rekt Capital took to X (formerly Twitter) to highlight the same.
#BTC
— Rekt Capital (@rektcapital) March 17, 2024
In 2 days, Bitcoin will officially enter the "Danger Zone" (orange) where historical Pre-Halving Retraces have begun
Historically, Bitcoin has performed Pre-Halving Retraces 14-28 days before the Halving
In 2020, this retrace was -20% deep
In 2016, this retrace was -40%… pic.twitter.com/rnKjznsGHk
As per the Tweet, within 2 days, BTC will enter the orange zone where crypto enthusiasts can observe the historical pre-halving retraces.
BTC has performed pre-halving retraces 14-28 days before the halving event and has pulled back over -11% within a week. Focusing on the historical trends, in 2020, the retracement was recorded at a drop of 20% whereas in 2016, the retrace was measured at a 40% drop.
In January, Rekt Capital anticipated a “pre-halving rally” to take place within 60 days before the event, followed by a “pre-halving retrace”. Surprisingly, Rekt Capital’s prediction turned out right when BTC entered its bullish trend in mid-February.
Moreover, the trend continued in March and BTC broke its all-time high of $68,990.
BTC declined by 8.5% from its all-time high of $73,835 on March 14, 2024. Despite the huge decline, industry leaders such as Richard Teng, and Kris Marszalek remain optimistic.
According to Richard Teng, Binance CEO, BTC could exceed $80K by the end of 2024. Institutional investment and newly approved US ETFs are a few reasons behind Teng’s predictions.
However, Teng warned about the price volatility along the way.
Kris Marszalek, the CEO and co-founder of Crypto(dot)com on the other hand, stated BTC’s price fall was a beneficial move.
In an interview with CNBC on March 15, Marszalek said that his exchange has documented a price upsurge recently. The same pattern was recorded in late 2020 and early 2021 when BTC jumped from $20K to $60K within three months. According to Marszalek, volatility will eventually subside.
About Bitcoin Halving
Bitcoin halving is an event in which the reward for validating transactions and blocks – the minting process – is cut in half. The process was designed to lower the available amount of new supply to tame inflation.
The event takes place roughly every 4 years and occurs every time 210,000 blocks are counted to the blockchain. The last halving happened on May 11, 2020, and the next is likely to occur around April 20, 2024.
According to CoinMarketCap, BTC is currently standing at $67,790.98, after an upsurge of 1.02% in a day.
Adarsh Singh is a true connoisseur of Defi and Blockchain technologies, who left his job at a “Big 4” multinational finance firm to pursue crypto and NFT trading full-time. He has a strong background in finance, with MBA from a prestigious B-school. He delves deep into these innovative fields, unraveling their intricacies. Uncovering hidden gems, be it coins, tokens or NFTs, is his expertise. NFTs drive deep interest for him, and his creative analysis of NFTs opens up engaging narratives. He strives to bring decentralized digital assets accessible to the masses.
