Bitcoin, the flagship cryptocurrency, is on the brink of entering a critical phase known as the “Danger Zone,” according to crypto trading expert Rekt Capital. This zone historically precedes significant price corrections and retracements before the highly anticipated Bitcoin Halving event.
Let’s break down what this means and why it matters.
The “Danger Zone” Defined
Rekt Capital’s recent tweet on March 18, 2024, stated:
“In 2 days, Bitcoin will officially enter the ‘Danger Zone’ (orange) where historical Pre-Halving Retraces have begun.”
Pre-Halving Retraces: These are price retracements that occur before Bitcoin’s halving events. Halving, which happens approximately every four years, reduces the block reward miners receive. Historically, BTC has experienced significant price movements leading up to halving.
Previous Instances:
2020: Before the halving in 2020, BTC retraced by approximately 20%.
2016: In the lead-up to the 2016 halving, the retracement was even deeper, at around 40%.
Current Situation
As of now, BTC is 30 days away from the upcoming halving. However, it has recently pulled back by 11% during the past week. This decline has caught the attention of traders and investors, especially given the historical context.
Market Implications
What can we expect in the coming days?
Bullish Scenario: If BTC manages to hold steady and avoid a significant retracement, it could signal strength and resilience. Traders may interpret this as a positive sign.
Bearish Scenario: A deeper retracement into negative territory might raise concerns. It could lead to increased selling pressure and potentially push BTC lower.
Violet Vallaya
