‘Bullish’ Crypto Analyst Explains the Five Phases of Upcoming Bitcoin Halving

Rekt Capital, a well-known pseudonymous analyst with over 370,000 followers on X, is optimistic about Bitcoin as we approach the April 2024 halving. The analyst suggest buying Bitcoin during the dips occurring five months before the halving. Rekt Capital states, “Historically, any deeper retraces that occur during this period tend to generate fantastic Return On Investment for investors in the several months after the Halving.”

Are you ready for the price movements before and after the halving?

According to the analyst, the Bitcoin Halving event, which is currently on its way, can be divided into five distinct phases:

1. Pre-Halving Period: This phase, occurring around 5.5 months before the April 2024 Halving, is characterized by deep retraces that historically lead to significant returns for investors in the months following the Halving.
2. Pre-Halving Rally: Roughly 60 days before the Halving, a rally typically happens as investors buy into the hype, aiming to sell at the news of the Halving.
3. Pre-Halving Retrace: Around the time of the Halving event, a retrace is observed. For instance, there was a 38% retrace in 2016 and a 20% retrace in 2020. This phase often leads investors to doubt whether the Halving positively impacts the price.
4. Re-Accumulation: Following the retrace, there’s a period of re-accumulation, often marked by investor shakeouts due to boredom, impatience, or disappointment from the lack of immediate significant returns post-Halving.
5. Parabolic Uptrend: Once Bitcoin breaks out from the re-accumulation phase, it enters a parabolic uptrend, experiencing rapid growth and setting new all-time highs.

The interest in Bitcoin is likely driven by excitement for the Spot Bitcoin ETF and the anticipated halving. Interest rate cuts by the U.S. Federal Reserve, expected in May 2024, may also play a role. Overall, 2024 looks promising, and Bitcoin supporters are eagerly anticipating the coming months. Meanwhile, Bitcoin has already seen a 125 percent rise in 2023.

Regarding Bitcoin’s price before the halving, Rekt Capital points out that speculation typically begins five months before the event. We might see significant Bitcoin developments starting next month. Rekt Capital observes that investors use price drops to buy more Bitcoin, pushing prices up and creating good opportunities for long-term investment.

If Rekt Capital’s predictions are accurate, Bitcoin’s price could exceed the $40,000 mark by December 2023. A new rally might start about two months before the halving, fueled by investor enthusiasm and high expectations, leading to a “buy the hype” scenario.

At time of writing, Bitcoin is on the upswing. Its price has reached $37,318, showing a slight gain of 0.30 percent in the last 24 hours. Since October, Bitcoin has been climbing, moving up from around $30,000.