Bitcoin Primed To Rally Ahead of Halving, Predicts Crypto Analyst – But There’s a Catch

A popular crypto analyst is updating his outlook on Bitcoin (BTC) as a key event approaches.

Pseudonymous crypto trader Rekt Capital tells his 53,700 YouTube subscribers that Bitcoin is likely going to repeat a 2016 pattern and rally heading into the mid-April BTC halving, when miners’ rewards are cut in half.

However, the trader warns Bitcoin could nosedive in the near term as the crypto king remains in a re-accumulation range.

“So you can see that we’re here in the re-accumulation range once again, very similar to 2016. And in 2016 we saw downside deviation wicking within the re-accumulation range.

What we’re seeing in this cycle is also downside wicking, but below the re-accumulation range, not within it, but just below it. Still, nonetheless, though, pulling back in retracement within this overall re-accumulation range and holding that re-accumulation range as we approach the halving event.

So if history were to repeat based on 2016 we should see some sort of upside going into the pre-halving rally.”

Looking at his chart, the trader suggests Bitcoin may rally to around the $50,000 level heading into the halving.

The trader also believes that in the next two weeks, Bitcoin could dip and revisit the $38,000 level.

“But the next two weeks are going to be quite interesting because they are opening up for potential still downside wicking below this re-accumulation range like we saw in 2016. In 2016, you can see [in chart below] that there were multiple weeks of downside wicking within the re-accumulation range.

So if this is any indication, what if we get some persistent downside wicking still even in this cycle within the re-accumulation range, maybe still downside deviating below that re-accumulation range.”

The trader also thinks there remains a small chance that the re-accumulation range will break down, sending Bitcoin below $38,000.

“Any downside deviation below this range in this current cycle is a possibility…

There are very specific conditions that Bitcoin would need to simply meet to break below $38,000…

But as long as that re-accumulation range holds, then we’re only going to finish on a 21% retrace from the highs and history is suggesting to us that we’re probably going to see this re-accumulation range continue to hold going into the halving.”

The trader suggests a “worst case scenario” for a Bitcoin dip this cycle would be around the $32,000 level.

Bitcoin is trading at $42,938 at time of writing.

I

 

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Generated Image: DALLE3