Bitcoin (BTC) could be just days away from entering a pre-halving “danger zone” — a time when its price has historically dropped in the lead-up to its halving, according to an analyst.
“In 2 days, Bitcoin will officially enter the ‘Danger Zone’ [...] where historical pre-halving retraces have begun,” crypto analyst Rekt Capital shared in a March 17 X post.
In the past, Bitcoin’s price has dipped in the 14 to 28 days leading up to its halving, Rekt Capital explained. During the 2016 halving, Bitcoin fell 40% during that time, and in 2020, it fell 20%.
In January, Rekt Capital predicted a “pre-halving rally” would occur roughly 60 days before the halving, followed by a “pre-halving retrace” around one to three weeks before the halving.
The prediction turned out to be right, as Bitcoin started to surge in mid-February, and further surprised analysts in March when it beat its previous cycle’s all-time high of $68,990 — marking the first time Bitcoin has ever done so before a halving event.
The next halving is forecast in just under 33 days, on April 20, according to CoinMarketCap. However, the price of Bitcoin has already fallen 8.5% from its March 14 all-time high of $73,835 to its current price of $67,537, per Cointelegraph Markets Pro.
Crypto.com and Binance bosses bullish on Bitcoin
Binance CEO Richard Teng told a crowd at an event in Bangkok on March 17 that he expects Bitcoin will continue to break records and climb past $80,000 by the end of the year, Bloomberg reported.
Teng claimed Bitcoin is “just getting started” and pointed to institutional investors’ large allocations to the cryptocurrency through the new United States exchange-traded funds (ETFs) — which have $57 billion under management, according to Dune Analytics data.
The Binance boss said he predicts Bitcoin will surpass $80,000 “with supply reducing and demand continuing to come through,” but it won’t be a “straight line” and price fluctuations will happen along the way.
Related: Why the Bitcoin halving matters for the future of decentralized finance
Crypto.com co-founder and CEO Kris Marszalek told CNBC on March 15 that Bitcoin’s recent price drop was a “healthy move, removing some of the leverage that built up.”
He added his exchange is seeing Bitcoin is on an upswing it last saw in late 2020 and early 2021, when it rallied from under $20,000 to over $60,000 in just over three months and said the current volatility is “actually pretty low [compared] to what we’ve seen in previous cycles.”
Marszalek expected to see a “steady ramp-up” in Bitcoin’s price, and it would see “less sudden moves” as it’s an asset “you want to hold for decades, not for days or weeks.”
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