Bitcoin Entering "Danger Zone" Ahead of Halving, Analyst Warns

A prominent analyst has cautioned that Bitcoin (BTC) is approaching a critical phase in its market cycle, historically associated with significant price corrections. Rekt Capital, a well-known pseudonymous analyst with a substantial following of 63,500 subscribers on YouTube, recently revealed in a video update that the flagship cryptocurrency tends to enter a "danger zone" roughly two to four weeks before the highly anticipated Bitcoin halving event.

The halving, which occurs approximately every four years, is an event where the rewards received by miners for verifying transactions are slashed in half. According to Rekt Capital, this critical period before the halving is when Bitcoin's price may undergo retracements. He stated, "Well, 28 days to 14 days before the halving event gives us a danger zone of some sort. This is a historical danger zone where Bitcoin could potentially local top in its previous rally phase before experiencing its pre-halving retrace."

As of now, the halving event is estimated to take place in mid-April. Rekt Capital pointed out that the current danger zone is roughly 28 days long, indicating that there are still a few weeks remaining in the pre-halving rally. It is worth noting that despite being halfway through this rally, the analyst emphasized that a continuation of the upward trend is not guaranteed, citing the possibility of dips and periods of reaccumulation.

Bitcoin's price has already showcased impressive gains leading up to the halving. At the time of writing, the cryptocurrency is trading at $69,572, reflecting its robust performance in the pre-halving rally. However, the recent dip of 4% further supports the analyst's warning that price retracements can occur even during this pre-halving rally phase.

Cryptocurrency enthusiasts and investors will be closely monitoring Bitcoin as it approaches the halving event. Past halvings have historically had a profound impact on Bitcoin's price, with some resulting in significant market volatility. As the countdown to the next halving continues, market participants will be keeping a keen eye on Bitcoin's movement and potential price corrections in the coming weeks.

Disclaimer: The information provided in this article is based on the analysis and opinions of the analyst mentioned. It should not be taken as financial advice. As with any investment, it is important to conduct thorough research and consider personal risk tolerance before making any decisions.