A widely followed crypto trader is warning that Bitcoin (BTC) could witness a dramatic correction around the next halving event in 2024.
Crypto analyst Rekt Capital tells his 370,300 followers on the social media platform X that Bitcoin could repeat a 2016 price pattern and decline by 40% after a pre-halving rally.
The next halving event is expected in April 2024, when miners’ rewards are cut in half. A 40% decline from Bitcoin’s current value is about $22,500, though the price of BTC could be much higher by April of next year.
“Bitcoin could potentially see a retrace around a halving event of up to 40%. We’re going to be focusing specifically on this [2016] pre-halving retrace period.
This is where Bitcoin was consolidating for a substantial amount of time in preparation for this light blue pre-halving rally to new yearly highs and then after we formed those new yearly highs, Bitcoin actually retraced the minus 40%.
A fair portion of that retrace came in the form of a downside wick and if you think about this downside wick, that retested the very top of this pre-accumulation range right over here, but occurred only a handful of weeks before the halving event offering a discount on Bitcoin.
40% isn’t always the case, but this is probably the worst-case scenario for Bitcoin. So if you see a range like this form in this cycle, for instance, then rest assured we’ll probably see a retest of that range.”
Source: Rekt Capital/X
Bitcoin is trading for $37,341 at time of writing.
