Bitcoin Déjà Vu: Analyst Identifies Trends Reflecting 2016 Cycle
02 Mai 2024 - 6:00PM
NEWSBTC
Cryptocurrency analyst Rekt Capital has come up with an intriguing
narrative pointing to several trends in the current price action of
Bitcoin that are similar to the price trends seen in the 2016 bull
cycle, even as market sentiments continue to dwindle. Bitcoin
Trends Reiterating 2016 Pattern According to Rekt Capital, more
than a month after the initial analysis, Bitcoin keeps
demonstrating how much it closely resembles the cycle of 2016.
Similar to 2016, Bitcoin has experienced further declines over the
past three weeks following the Halving below the Range Low of its
Re-Accumulation Range also known as the Post-Halving Danger Zone
The post read: Over a month later Bitcoin continues to prove how it
is more similar to the 2016 cycle. Just like in 2016, Bitcoin in
this cycle is seeing additional downside below the Range Low of its
Re-Accumulation Range in the three-week window after the Halving
(i.e. Post-Halving “Danger Zone”). Given that Rekt Capital already
addressed the concept of the Post-Halving Danger Zone, the analyst
is not shocked by this current price decrease. During the 2016
cycle, about 21 days after the Halving event, BTC saw a lengthy
decline of 11% before transitioning toward an upward direction. It
is worth noting that Rekt Capital noted that if downside volatility
around the Re-Accumulation Range Low is going to happen in this
cycle, 2016 history indicates it may happen during the 15 days
following the Halving. Since the recent event was concluded about
12 days ago, the expert’s prediction could be realized in the
upcoming days. Related Reading: Bitcoin Enters ‘Danger Zone’
Post-Halving, Analyst Warns Of Potential Downside While the
Post-Halving “Danger Zone” ends in 15 days, 2016 data suggests that
there may be some negative volatility in the interim, possibly
reaching the $60600 Range Low. Drawing attention to previous
patterns, Rekt Capital highlighted a similar pattern between the
2016 and 2024 pre-Halving re-accumulation range. After a breakout
from the re-accumulation range this year, BTC witnessed a
Pre-Halving rally, as was observed in 2016. Pre-Halving Retrace
Movement Just like in 2016, once the pre-Halving rally peaked,
Bitcoin started its Pre-Halving retrace. Specifically, this
occurred roughly 28 days prior to the Halving event in both 2016
and 2024. Related Reading: Analyst Warns Of Bitcoin Pre-Halving
Retrace Echoing Troubling 2020 Trend A negative wick on the weekly
candle indicates a significant reaction in the first week of the
pre-Halving Retrace in 2016. However, this reaction was fleeting
and came before an extended price decline. This cycle likewise saw
a strong early reaction from Bitcoin via a downward wick, but there
are indications that this reaction might not have lasted long.
Thus, to avoid a fate similar to that of 2016, Rekt Capital
believes that BTC will need to maintain highs around $60,000 and
beyond. Featured image from iStock, chart from Tradingview.com
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