Prior to the halving, Bitcoin has historically declined, and this trend could continue within the next week. An analyst believes that Bitcoin may be only a few days away from entering a pre-halving “danger zone,” which is a period of time where the price of the cryptocurrency has historically fallen before it is halved.
Crypto analyst Rekt Capital revealed in a March 17 X post that “Bitcoin will officially enter the ‘Danger Zone’ […] where historical pre-halving retraces have begun” in two days.
According to Rekt Capital, in the 14 to 28 days preceding its halving, the price of Bitcoin has historically dropped. Bitcoin saw a 40% decline during the 2016 halving and a 20% decline in 2020.
Rekt Capital forecast in January that there would be a “pre-halving rally” approximately sixty days before to the halving, and then a “pre-halving retrace” approximately one to three weeks prior to the halving.
The forecast proved accurate, as Bitcoin began to soar in mid-February and startled observers even more in March when it exceeded the peak of the previous cycle at $68,990 – the first time it has ever done so prior to a halving event.
CoinMarketCap predicts that the next halving will occur on April 20, which is less than 33 days away. Nonetheless, since reaching its all-time high of $73,835 on March 14th, the price of Bitcoin has already decreased by 8.5% to $67,537.
Ceos of Crypto.com and Binance are Optimistic about Bitcoin
At a Bangkok event on March 17, Binance CEO Richard Teng stated to the audience that he believes Bitcoin would continue to smash records and reach over $80,000 before the end of the year, according to Bloomberg.
Teng asserted that Bitcoin is “just getting started” and cited the significant investments made in the cryptocurrency by institutional investors through the recently launched exchange-traded funds (ETFs) in the US. These ETFs currently have $57 billion under management, according on data from Dune Analytics.
The CEO of Binance stated that he believes Bitcoin will hit $80,000 “with supply reducing and demand continuing to come through,” but that there will be price swings along the way and it won’t be a “straight line.”
On March 15, Kris Marszalek, CEO and co-founder of Crypto.com, told CNBC that the recent decline in Bitcoin’s price was a “healthy move, removing some of the leverage that built up.”
The last time Bitcoin had an upswing was in late 2020 and early 2021, when it surged from less than $20,000 to over $60,000 in just over three months. He stated that his exchange is witnessing this same upswing again, and that the volatility is “actually pretty low [compared] to what we’ve seen in previous cycles.”
Marszalek predicted that the price of Bitcoin would rise “steadily” and have “fewer abrupt movements” because it is an asset that one should “hold for decades, not for days or weeks.”
