A cryptocurrency analyst and trader is warning that Bitcoin (BTC) may see another move to the downside in the next two weeks.
The analyst pseudonymously known as Rekt Capital tells his 74,300 YouTube subscribers that the current Bitcoin correction may be mirroring its 2016 halving price action when BTC witnessed two corrective waves: one before the halving and another after the halving.
According to the analyst, the historical precedent suggests that it is within the realm of possibility for BTC to witness another pullback within weeks after the most recent halving.
“If you look at these halving retraces, a small portion of them occur before the halving. But the majority of these pullbacks and consolidation periods occur after the halving…
In 2016, we had a slightly different scenario where 28 days before the halving, we saw this pre-halving retrace kick start… Pre-halving we already saw that initial downside wick that crashed. But after the halving, we saw additional downside so in effect, this danger zone did not just end before the halving. It extended a few more weeks after the halving…
If we think about the pre-halving danger zone [now], we need to also potentially factor in or at least consider a potential danger zone after the halving – so, a second danger zone.”
The pseudonymous analyst says that based on historical price action, Bitcoin could trade within the post-halving danger zone until next month.
“So if the halving was last week then technically we have a three-week window of 21 days… Maybe even less than that right now because it’s the [27th] of April…
So just over two weeks left for this post-halving danger zone based on historical tendencies in 2016 for this post-halving danger zone to come to full fruition.”
According to Rekt Capital, Bitcoin’s current support zone at around the $60,000 price could prove to be enduring if it holds over the next couple of weeks.
“It’s about these next two weeks, these two pivotal weeks. Can we continue to hold on at the range low here [around $60,000]? And if we do within the next two weeks, then that gives us a fair degree of confidence that maybe, just maybe, this re-accumulation range low is going to continue to hold.”
At time of writing, Bitcoin is trading for $62,871, down over 3% in the past day.
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