A Crypto Analyst Predicts Bitcoin Rally Ahead of Halving
A well-known crypto analyst is updating his perspective on Bitcoin (BTC) as a significant event approaches. According to the pseudonymous trader, Bitcoin is likely to follow a pattern similar to 2016 and experience a rally leading up to the mid-April BTC halving, which will cut miners’ rewards in half.
However, the analyst also warns that Bitcoin may experience a nosedive in the near future as it remains within a re-accumulation range. He points out that while there is downside wicking occurring below the re-accumulation range, history suggests that Bitcoin will still hold this range as it approaches the halving event.
Based on his chart analysis, the trader suggests that Bitcoin could potentially rally to around $50,000 before the halving. However, he also predicts that in the next two weeks, Bitcoin might dip and revisit the $38,000 level.
Possible Downside Wicking and Breakdown
The trader emphasizes that the next two weeks will be crucial as there is a possibility of persistent downside wicking below the re-accumulation range. He refers to 2016, where multiple weeks of downside wicking occurred within the re-accumulation range. This suggests that there could be further downside deviation below the range in this current cycle.
While acknowledging the chance of a breakdown in the re-accumulation range, resulting in Bitcoin falling below $38,000, the trader believes that as long as this range holds, any retracement from its highs will likely be limited to around 21%.
In a worst-case scenario for a dip during this cycle, the trader estimates that Bitcoin may drop to around $32,000. Currently, Bitcoin is trading at approximately $42,938.
Hot Take: Bitcoin’s Path to the Halving
A crypto analyst predicts that Bitcoin will rally ahead of the upcoming halving event, following a pattern similar to 2016. However, the analyst also warns of potential downside wicking and a breakdown in the re-accumulation range. While there is a chance of Bitcoin dipping to around $38,000 or even $32,000, history suggests that the re-accumulation range will hold as the halving approaches. The next two weeks will be crucial in determining Bitcoin’s short-term direction. Despite the near-term uncertainties, the analyst suggests that Bitcoin has the potential to rally to around $50,000 before the halving takes place.
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