Well-known cryptocurrency analyst Rekt Capital has recently shared his thoughts on the reaccumulation phase of Bitcoin in a YouTube video. Rekt Capital analyzed the importance of this phase by referring to historical cycles, with an emphasis on the cycles of 2020 and 2016.
Over two weeks to the next halving event, Bitcoin is experiencing what Rekt Capital labelled as a classic pre-halving retrace phase. He found that from the historical data, Bitcoin usually goes through a pullback around 12 days before the halving. From this, 2020 had a 19% downside and 2016 had 29%.
Bitcoin’s Pre-Halving Retracement
Still, even though the last bearish wick was 40%, Rekt Capital doubted the possibility of 40% fall and gave a range of 18% to 25% as more reasonable. He focused on the challenge of determining the end of this retracement phase, pointing to the possibility of false breakdowns under the reaccumulation zone.
Rekt Capital warned not to rush into the fact that it was the bottom of the pre-halving retrace phase as a lot of variability had been observed in the same cycles before. He stressed that this phase is essential for the formation of the upcoming reaccumulation phase, which historically follows retracement.
The analyst emphasized the importance of reaccumulation ranges that provide strategic buying opportunities to investors. He emphasized the need for patients and smart positioning especially in view of the recent market volatility.
As for the Pi Cycle Top indicator that reaches the resistance at the 350-day moving average, Rekt Capital noted it among the factors to be taken into account for the formation of reaccumulation ranges. He remarked that although this indicator had historically triggered rejections, it created reaccumulation phases as well, thus, strengthening its importance in the current market cycle.
Going forward, Rekt Capital underscored the transitory nature of the current phase with the setup for more consolidation in the lead-up to the halving. He advised investors to stay vigilant and ready to seize potential buying opportunities as Bitcoin moves into the reaccumulation arena.
Rekt Capital highlighted the key role of strategic positioning during pre-halving retracing phase, pointing the possibilities of big price actions coming in the next weeks. With the halving event looming ahead for Bitcoin, investors are encouraged to follow the developments and adjust their tactics so as to capitalize on the market opportunities.