Bitcoin’s Price Stalls, Halting Recovery
The price of Bitcoin has been fluctuating between $42,000 and $43,000, preventing it from fully recovering from its dip below $38,500.
Predicting a Pre-Halving Rally for Bitcoin
Rekt Capital, a market analysis expert, has noticed historical patterns surrounding previous halving events. These patterns show a consistent trend of significant rallies before the halving, followed by a short period of correction and consolidation before a major bull run and peak.
According to Rekt Capital, if history is any indication, Bitcoin could start its pre-halving rally as early as next week. This rally is driven by investors buying in anticipation of the halving and then selling their positions to realize profits.
The subsequent selling pressure leads to a pre-halving retrace that typically occurs a couple of weeks before the actual halving event. In previous cycles, this retrace reached depths of -38% in 2016 and -20% in 2020.
Long-Term Holder Support and ETF Buying Pressure
Crypto Con has drawn attention to the long-term holder support line in the Bitcoin market. According to the analyst, no Bitcoin cycle has ever escaped a retest of this line, which acts as a crucial level of support during various market cycles.
Based on historical patterns, Crypto Con suggests that Bitcoin may need to retest the long-term holder support line at around $31,300. However, the potential impact of ETF buying pressure on Bitcoin’s price is counterbalancing the argument for further corrections.
Hot Take: Opportunities for Investors
While the price of Bitcoin may experience temporary fluctuations and dips, proponents of Bitcoin as an investment opportunity see these scenarios as buying opportunities. Investors who believe in the long-term prospects of Bitcoin may choose to take advantage of any price dips resulting from a retest of support.
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