06 May

According to crypto analyst Rekt Capital, the recent Bitcoin halving event remains a critical factor in shaping the cryptocurrency's market dynamics. Taking place a little over two weeks ago, this event is believed to have a cyclical impact on Bitcoin's price and the behavior of investors, unfolding in three discernible phases.

Phase 1: Pre-Halving Retrace

In the initial phase, known as the pre-halving retrace, there is a significant decline in price, which in this particular cycle amounted to a 23.6% decrease. Rekt Capital notes that this decline is relatively moderate compared to the 38% drop observed in 2016 and the 19% drop seen in 2020. These retracements are not just temporary downturns but play a crucial role in establishing what the analyst refers to as the re-accumulation range. This phase typically occurs before the halving event and serves to prepare the market for more stabilized activity following the event.

Phase 2: Re-Accumulation

After the halving, the market enters what Rekt Capital terms as the re-accumulation phase, which plays a crucial role in laying the groundwork for subsequent price actions. During this period, Bitcoin's price consolidates within a defined range, characterized by pullbacks and sideways movements. This behavior reflects typical range-bound activity as the market adjusts following the previous rally.

According to Rekt Capital, the duration of this phase can extend over several weeks to months, often culminating in a significant price breakout. This stage may test investors' patience, as some may grow disillusioned by the absence of significant price fluctuations or become disheartened due to the prolonged period of market inactivity.

Phase 3: Parabolic Uptrend

The last phase, as emphasized by the cryptocurrency analyst, is the parabolic uptrend. During this phase, Bitcoin experiences accelerated growth, breaking out from the re-accumulation range and entering a rapid upward trajectory. Historically, as noted by Rekt Capital, this uptrend has spanned just over a year, approximately 385 days. However, they suggest that current market trends indicate a potentially expedited cycle, with a duration that could be halved in the current market cycle.

May 2024, Cryptoniteuae

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