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February 7, 2024

Bitcoin May Be a Few Days Away From Igniting Pre-Halving Rally, According to Analyst – Here’s His Outlook

By Henry Kanapi

A closely followed crypto analyst thinks that Bitcoin (BTC) could start its pre-halving rally as soon as next week.

Pseudonymous analyst Rekt Capital tells his 395,800 followers on the social media platform X that Bitcoin is about to enter its pre-halving rally phase based on historical data.

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According to the analyst, historical data suggests that Bitcoin’s price action tends to go through five stages based on its halving, an event when the issuance of new BTC to miners is cut in half.

With the next halving slated for April, Rekt Capital believes that Bitcoin is now transitioning from its pre-halving retrace to its pre-halving rally.

“If history is any indication, then Bitcoin should begin its pre-halving rally as soon as next week.” 

Source: Rekt Capital/X

Looking at the trader’s chart, he seems to suggest that BTC will witness one more round of re-accumulation after the pre-halving rally before entering a parabolic uptrend that could see Bitcoin rallying well above $90,000.

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For now, Rekt Capital thinks that Bitcoin is in a good position to break above its immediate resistance at around $43,786 after touching the level multiple times in the past two months.

“Rejected from the range high (red) last week, forming an upside wick and a new lower high.

However, despite last week’s range-high (RH) rejection, BTC is attempting to revisit the RH this week.

If this strength persists, one could think the RH resistance is weakening.” 

Source: Rekt Capital/X

The analyst also notes that Bitcoin appears to be gathering bullish momentum after BTC’s relative strength index (RSI) indicator broke above its diagonal resistance to invalidate a potential bearish divergence signal on the weekly chart.

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A bearish divergence typically appears when the RSI momentum indicator enters a downtrend while the asset’s price keeps going up. The signal suggests that a bearish reversal is in sight amid waning bullish momentum.

Says Rekt Capital,

“The new weekly close is in and the Bitcoin RSI has successfully broken its downtrend (red), suggesting that the bearish divergence has been invalidated.”

Source: Rekt Capital/X

At time of writing, BTC is worth $43,161, up 1.22% in the past 24 hours.

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