A popular crypto analyst is predicting that Bitcoin (BTC) will cross the $55,000 level following one upcoming event as he warns of a near-term market correction.
In a new video update, pseudonymous crypto trader Rekt Capital tells his 45,600 YouTube subscribers that Bitcoin will likely repeat a historic pattern after halving events, which occur every four years, and soar in price just months afterward.
The next Bitcoin halving is scheduled for April 2024, when miners’ rewards are cut in half.
“Now we know that Bitcoin tends to enjoy lower prices prior to the halving. So, if you look at this blue vertical being the pre-halving prices then of course even this price is lower than these prices and these prices. Even the old all-time highs are lower pre-halving prices than post-halving. And you see this across time that we actually break beyond a major all-time high resistance here in the immediate months after the halving.
So the same will happen here post-halving. We’re going to break the $55,000 region in the immediate months after the halving, as we’ve seen in the past. So pre-halving prices are always going to be lower than post-halving prices. And that’s just been a cyclical thing, a cyclical recurring theme in the Bitcoin price history.”
In the near term, the analyst tells his 347,700 Twitter followers that he expects a market correction for Bitcoin.
“Even on BTC’s recent move up, the mini-parabola continued to act as resistance.
BTC has since rejected and even lost the multi-day Higher Low (dotted blue).
Now at green support. Lose this green level and orange could be next over time.”
Looking at his chart, he shows that if Bitcoin loses support at the $29,887 level the king crypto is likely going to dip to $29,225.
At time of writing, Bitcoin is trading for $29,750, down 0.7% in the last 24 hours.
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