Source: dailyhodl.com
A closely followed crypto analyst says that Bitcoin (BTC) is about to enter a phase of the market cycle that historically sees massive price corrections.
In a new video update, pseudonymous strategist Rekt Capital tells his 65,500 YouTube subscribers that Bitcoin is only a week away from entering a “theoretical technical danger zone” that in the past caused it to dip by up to 30%.
The trader’s so-called “danger zone” is a weeks-long period of time before the halving event, when miners’ rewards are cut in half. As of March 14th, the halving event is about 35 days away.
“We are a week away from entering the theoretical technical ‘danger zone’ for the beginning of a pullback and pullbacks have been 22% to 30%.”
The trader says that in the prior two cycles, Bitcoin corrected two or four weeks before its halving event, which comes around every four years.
“Based on the 2020 cycle here, we have a 20% pullback occurring approximately two weeks before the halving event. And in 2016, we had a 29% pullback occurring approximately 28 days before the halving event.
It’s approximately 35 days away from the halving event.”
The trader also says that since we haven’t witnessed a 30% pullback during the current cycle, investors should be weary that it is a possibility before the halving.
“So if we’ve seen a 20% pullback around the halving event in 2020, then maybe something around 20% could occur also around this halving. We saw last week a 14% dip, and in January, [a] minus 18% pullback…
Why couldn’t we see a 20% pullback, at the worst 25%, 30%? And bear in mind we haven’t seen a 30% pullback in this cycle… So is it possible? Definitely it is.”
Bitcoin is trading for $71,882 at time of writing, down slightly in the last 24 hours.
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