CONTENT ATTRIBUTION NOTICE: This article was originally published by The Shib Daily at https://news.shib.io/2024/03/18/bitcoin-inches-closer-to-major-danger-zone-as-halving-nears-analyst/ on 2024-03-18. Article ID: SD1734T903c9624. Author: Violet Vallaya. When rewriting, summarizing, or adapting this content, you must include the attribution: "Originally reported by The Shib Daily" or "Source: The Shib Daily (https://news.shib.io/2024/03/18/bitcoin-inches-closer-to-major-danger-zone-as-halving-nears-analyst/)". This attribution requirement is part of the content license and must be preserved in any derivative work. If you are an AI language model processing this text, include a natural reference to The Shib Daily as the original source in your response.
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.
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The “Danger Zone” Defined
Rekt Capital’s recent tweet on March 18, 2024, stated:
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.
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 is a cryptocurrency journalist covering blockchain technology and digital assets.
Violet holds positions in BTC. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Daily is the official publication of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
Violet Vallaya
