Cryptocurrency analyst Rekt Capital outlined the five stages that Bitcoin is expected to go through before the next halving, scheduled for March 2024.
Pre-Halving Period
With approximately 5.5 months until the Bitcoin Halving in April 2024, Rekt Capital argues that significant withdrawals during this period can provide significant returns for investors in the months following the halving.
Rally Before Halving
A pre-halving rally typically occurs approximately 60 days before the halving, according to the analyst. Investors “buy the hype,” aiming to “sell the news” in anticipation of the halving.
Withdrawal Before Halving
A pre-halving pullback usually occurs around the halving event itself. In 2016, this pullback was 38% deep, while in 2020 it was 20% deep. According to the analyst, this pullback often leads investors to question whether the halving is a bullish trigger on the price.
Accumulating Bitcoin Again
According to the analyst, the pre-halving pullback is followed by a reaccumulation period of several months. Many investors at this stage are struck by boredom, impatience, and disappointment at not seeing significant results in their Bitcoin investments immediately after the halving.
Parabolic Rising
According to the analyst, Bitcoin will enter a parabolic uptrend after exiting the reaccumulation area. The analyst argues that at this stage, Bitcoin is experiencing rapid growth on its way to reaching all-time highs.
*This is not investment advice.
