Bitcoin Before Halving: Analysis of Similarities and Growth

Rekt Capital Analysis: Similarities in Bitcoin Movement Before the 2020 Halving and Present

Rekt Capital, a renowned cryptocurrency market analyst, has noticed an interesting resemblance between the current movement of Bitcoin before the upcoming halving and the one that occurred in 2020. Observing the current events in the cryptocurrency market, he observes trends that may indicate a repetition of the scenario from two years ago.

Bitcoin Bounces Back from Declines and Rises

Currently, Bitcoin is showing growth, reaching over $70,000 USD after a dynamic bounce back from recent lows. Rekt Capital suggests that it is possible that the largest pullback is already behind us, referring to the analogy with the price movement before the previous halving in 2020.

Comparison of Pullbacks Between Cycles

The analysis indicates that in the current digital asset cycle, there was a pullback of just over 18%, while in the 2020 cycle, it was slightly over 19%. This suggests the potential for a repeat of the 2020 movement in the current market situation.

Price Rebound as a Positive Signal

Rekt Capital noticed that Bitcoin has held within a 18% range since the recent decline. The current price rebound gives hope for a possible end to the recent downtrend and a reversal of the market direction.

Impact of the Upcoming Halving and Bitcoin ETF

The upcoming Bitcoin halving planned for 2024 poses a challenge for the currency, making it difficult to return to the last peak at $73,000. However, speculations suggest that the current growth may herald the end of declines before the approaching halving.

In the last few days, the price of Bitcoin has risen by over 5%, reaching around $70,806. The market capitalization and trading volume have also increased by 5.49% and 47.82% respectively over the last 24 hours.

Bitcoin ETF and Price Surge

The main factor driving the increase in Bitcoin prices in the current cycle is the recognition of the BTC ETF by the SEC in January 2024. Approval of this product provides investors with a convenient way to benefit from the value of Bitcoin without the need for physical ownership.

Expectations Ahead of the Upcoming Halving

Furthermore, the price of Bitcoin has risen from $46,000 to $73,000 since the SEC approved the ETF. Another factor influencing the price of Bitcoin is investors’ anticipation of the upcoming Halving in April, which in the past has led to a significant increase in the value of the cryptocurrency.