Bitcoin Resumes Momentum, Echoes 2020 Pre-Halving Retrace
Bitcoin, the leading cryptocurrency, is showing significant upward movement, surpassing $70,000 and bouncing back from a recent dip. Rekt Capital, an expert in the field, has noted similarities between the current pullback and the pre-halving retracement in 2020.
Comparing Pullbacks: Then vs. Now
- Bitcoin has recently retraced by over 18% in the current cycle
- In the 2020 cycle, the retracement was more than 19%
- The similarities suggest a mirroring of the 2020 movement this time around
Rekt Capital’s analysis reveals that Bitcoin has been contained within the Weekly range since the 18% retracement. The peaks in 2021, both the upside wick and the candle body, form this range. Reclaiming the $69,200 ‘range high’ as support is seen as a positive sign, indicating a potential end to the decline and a move towards higher levels.
Potential Catalysts Behind Bitcoin’s Current Strength
At the time of writing, Bitcoin has surged to approximately $70,806, marking a daily increase of over 5%. Its market capitalization and trading volume have also shown significant growth, rising by 5.49% and 47.82% in just one day.
- The approval of spot BTC ETFs in January 2024 is considered a key driver of Bitcoin’s current growth
- Increased adoption by industry leaders and a surge in capital inflow have propelled Bitcoin’s price from $46,000 to $73,000
- The anticipation surrounding the upcoming Bitcoin Halving in April is also believed to have influenced the coin’s value
Historically, Bitcoin halving events have led to notable price increases, prompting investors to position themselves for potential gains post-halving.
Conclusion 🚀
As Bitcoin showcases a striking resemblance to its 2020 pre-halving retracement, market watchers are closely monitoring its movements. The recent recovery and signs of stabilization hint at a potential upsurge, echoing past trends. The approval of spot BTC ETFs and the looming Bitcoin Halving event serve as catalysts for Bitcoin’s current strength, attracting both institutional and retail investors to partake in the digital asset’s growth story. Stay tuned as Bitcoin navigates through market dynamics, potentially setting new milestones and charting its course towards higher valuations.
By
By
By