Crypto News– According to a recent post by the pseudonymous crypto trader Rekt Capital, Bitcoin investors may have a limited two-week window to potentially capitalize on buying Bitcoin at discounted prices before a pre-halving rally commences in February.
An opportunity may still linger to buy BTC at bargain rates, perhaps for the last time
In their post on January 29, shared with their sizable following of 349,000, Rekt Capital outlined the typical market behavior surrounding Bitcoin halving events, which occur in five stages, with the first three preceding the actual halving.
Rekt Capital highlighted the trend observed in previous Bitcoin halvings, where there tends to be a significant downturn in the months leading up to the event, presenting substantial opportunities for investors. This pattern appears to hold for 2024 as well. The Bitcoin halving, slated for April, involves the reduction of mining rewards by half for Bitcoin miners and is widely regarded as a bullish catalyst for BTC’s price.
Observing Bitcoin’s approximately 18% retracement in January, Rekt Capital suggests a two-week timeframe during which Bitcoin could experience another notable pullback. They emphasized that any retracement during this period likely signifies one of the last opportunities for investors to buy Bitcoin at bargain prices before the pre-halving phase concludes.
One last shot may arise to obtain BTC at bargain prices – stay attentive
Following this phase, Rekt Capital describes the onset of the “pre-halving rally” approximately 60 days prior to the halving event. During this period, short-term traders often seek to “buy the hype,” anticipating price increases leading up to the halving, only to “sell the news” around the event itself. This “sell the news” event typically occurs one to three weeks before the halving and is accompanied by what Rekt Capital terms the “pre-halving retrace.” For instance, in 2016, there was a 38% price dip preceding the halving, while in 2020, there was a 20% drawdown.
Following a successful halving, Rekt Capital anticipates a prolonged period of relatively stagnant price action, characterized by sideways movement, which often leads to the disenchantment of some investors. This phase historically persists for an average of 150 days, with many investors shaken out due to dissatisfaction with the post-halving price dynamics.