Bitcoin (BTC) may be on the verge of entering a critical period known as the “Danger Zone” before its halving, where its price has historically experienced a decline, according to an analyst. Rekt Capital, a crypto analyst, recently shared on X that in the past, Bitcoin’s price has dropped in the 14 to 28 days leading up to its halving. For instance, during the 2016 halving, Bitcoin experienced a 40% decrease, while in 2020, it fell by 20%. Rekt Capital also provided a visual representation of these pre-halving retracement zones and post-halving price booms.
Earlier this year, Rekt Capital correctly predicted a “pre-halving rally” approximately 60 days prior to the halving, followed by a “pre-halving retrace” one to three weeks before the event. Bitcoin indeed started surging in mid-February, surprising analysts when it surpassed its previous cycle’s all-time high of $68,990. This marked the first time Bitcoin achieved this feat before a halving event.
The next halving is projected to occur in approximately 33 days on April 20, according to CoinMarketCap. However, Bitcoin’s price has already declined by 8.5% from its March 14 all-time high of $73,835 to its current price of $67,537, as reported by Cointelegraph Markets Pro.
In other news, Richard Teng, CEO of Binance, expressed optimism about Bitcoin’s future during an event in Bangkok on March 17. He believes Bitcoin will continue breaking records and surpass $80,000 by the end of the year. Teng attributed this prediction to institutional investors’ significant investments in Bitcoin through new United States exchange-traded funds (ETFs), which currently manage $57 billion, according to Dune Analytics.
Similarly, Kris Marszalek, co-founder and CEO of Crypto.com, shared his thoughts on Bitcoin’s recent price drop. He described it as a “healthy move” that eliminated excessive leverage. Marszalek also noted that his exchange has observed a similar upswing in Bitcoin’s price as seen in late 2020 and early 2021 when it rallied from under $20,000 to over $60,000 in just over three months. He expects Bitcoin’s price to steadily increase with fewer sudden fluctuations, emphasizing that Bitcoin is a long-term asset.
In conclusion, Bitcoin’s upcoming halving has historically been accompanied by price retracements, and the current decline in its price suggests a potential entry into the “Danger Zone.” However, industry experts such as Binance CEO Richard Teng and Crypto.com CEO Kris Marszalek remain bullish on Bitcoin’s future, predicting further price increases and emphasizing its long-term value.