Rekt Capital on the “3 Phases of The Bitcoin Halving”

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As a seasoned crypto investor with a few market cycles under my belt, I wholeheartedly concur with Rekt Capital’s analysis of Bitcoin’s post-halving phases. The pre-halving retrace is an essential component of this process, serving as a crucial opportunity for investors to enter the market at lower prices before the next phase kicks in.

Based on the analysis of cryptocurrency expert Rekt Capital, Bitcoin‘s highly anticipated halving event plays a significant role in shaping its market behavior.

Approximately two weeks ago, an occurrence is said to have begun a recurring effect on Bitcoin’s price and investor actions, comprised of three distinct stages.

Phase 1: Pre-Halving Retrace

As an analyst, I’ve observed that during the initial phase before a Bitcoin halving event, there is a noticeable price decrease. In this particular cycle, it amounted to a 23.6% reduction. However, it’s important to note that this decline is considered moderate compared to the more significant drops of 38% in 2016 and 19% in 2020. These retracements serve an essential purpose – they establish what I refer to as the re-accumulation range. This phase typically precedes the halving and sets the foundation for a more settled market scenario post-event.

Phase 2: Re-Accumulation

After undergoing a halving event, the cryptocurrency market enters a critical stage called the “re-accumulation phase” according to Rekt Capital. During this time, Bitcoin’s price stabilizes within a specific range, with occasional pullbacks and sideways trends appearing. This is normal market behavior as investors reassess and prepare for potential future price fluctuations.

During this phase, as pointed out by Rekt Capital, the duration can range from several weeks to months and may conclude with a substantial price surge. This period may test investor endurance, as some might lose faith in the lack of considerable price fluctuations or grow disenchanted due to the extended period of inactivity.

Phase 3: Parabolic Uptrend

In the expert’s assessment, the last stage is referred to as the parabolic upward trend by the crypto analyst. During this phase, Bitcoin experiences an extended period of significant growth after breaking free from its consolidation period. Based on historical data from Rekt Capital, this phase typically extends for roughly a year or 385 days. However, recent market indicators hint at a possible shortened cycle in the current market trend, potentially cutting the duration in half.

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2024-05-06 13:04