Final opportunity for discounted BTC: Rekt Capital

According to a crypto trader known as Rekt Capital, investors interested in buying Bitcoin at lower prices may only have a two-week window before a pre-halving rally begins in February. Rekt Capital explained that the market action surrounding the Bitcoin halving typically occurs in five stages, with the first three stages happening before the halving event. In past halvings, there has been a significant dip in the months leading up to the event, which has provided excellent returns for investors. This trend is expected to continue in 2024. The Bitcoin halving refers to the reduction of mining rewards for Bitcoin miners and is often seen as a positive catalyst for the price of BTC.

Rekt Capital noted that Bitcoin has already experienced an 18% retrace in January. They believe there is now a two-week period in which Bitcoin may undergo another significant pullback. During this time, it is considered one of the last opportunities to buy Bitcoin at a lower price before the halving. Following this period, Bitcoin typically enters what Rekt Capital refers to as the “pre-halving rally” phase, which occurs approximately 60 days before the halving event. Short-term traders often try to take advantage of the hype leading up to the halving, only to sell their holdings around the time of the event.

In the weeks leading up to the 2016 halving, there was a 38% price dip, while the 2020 halving saw a 20% drawdown. After a successful halving, there is usually a prolonged period of sideways price action, which can last for an average of 150 days. This period is often considered “boring,” and many investors become disheartened due to the lack of significant price movements. This is followed by the “parabolic uptrend” phase, where Bitcoin experiences accelerated growth after a period of accumulation.

While Rekt Capital believes that the halving is a crucial event for Bitcoin’s price action, not all experts agree. Some argue that the halving is becoming less useful as a metric to judge price movements. Ralph Zagury, the chief investment officer of Swan Bitcoin, believes that liquidity plays a more integral role in influencing Bitcoin’s price. Zagury stated that flows, rather than the halving, are what truly drive the market.