A cryptocurrency analyst and trader, Bitcoin He warns that (BTC) could see another downward move in the next two weeks.
The analyst, who goes by the pseudonym Rekt Capital, notes that the current Bitcoin correction may reflect the 2016 halving price action, where BTC witnessed two corrective waves, one before the halving and the other after the halving.
According to the analyst, historical precedent suggests that BTC is likely to witness another pullback within weeks of the latest halving.
If you look at these halving pullbacks, you’ll see that a small portion of them occurred before the halving. However, the majority of these pullbacks and consolidation periods occur after the halving…
NEWS CONTINUES BELOWIn 2016, we had a slightly different scenario where we saw the start of a pre-halving pullback 28 days before the halving… Before the halving, we had already seen the first downside wick fall. However, we saw further downside movement after the halving, so actually this danger zone didn’t just end before the halving. It took a few more weeks after the halving…
If we now consider the pre-halving danger zone, we also need to potentially take into account the post-halving danger zone, or at least consider a second danger zone.
NEWS CONTINUES BELOW
Based on past price movements, the analyst says Bitcoin could be trading in the post-halving danger zone by next month.
If the halving happened last week, then technically we have a three week window of 21 days… Maybe less than that right now because we are on the 27th of April…
So, based on historical trends in 2016, there are just over two weeks left for this post-halving danger zone to come to full fruition.”
Bitcoin’s current support zone around $60,000 could prove permanent if it holds over the next few weeks, according to Rekt Capital.
“It’s all about the next two weeks, these two important weeks. Can we continue to hold in the low range here around $60,000? “If we can do that in the next two weeks, that gives us a fair amount of confidence that maybe, just maybe, the low of this reaccumulation range will continue to hold.”
As Koinfinans.com reported, at the time of writing this news, Bitcoin is trading at $62,871, down over 3% in the past day.
