Can Bitcoin overcome past trends? Examining the pre-halving rally and resistance levels

Bitcoin (BTC), the largest cryptocurrency on the market by trading volume and capitalization, has begun a renewal bullish uptrendreclaimed previously lost territory and surpassed resistance levels, sparking optimism among investors.

Bitcoin is currently trading at $47,900, just below its 25-month high of $49,000, and has seen a notable price increase of over 6% in 24 hours and a significant increase of 11% in the last seven days.

Mapping BTC's path amid the pre-halving rally

However, given the excitement in the market, it is crucial to consider historical trends and their potential impact on Bitcoin's performance in the lead-up to the upcoming halving. Market expert and analyst Rekt Capital Highlights two notable historical patterns:

Firstly, the “pre-halving rally” phase appears to be beginning. This phase refers to a period in which Bitcoin experiences a price increase before Halving event take place.

Second, historical data shows that Bitcoin struggled to break through macrodiagonal resistance before the halving, which Rekt puts at $47,000. Additionally, it is difficult to overcome the four-year cycle resistance, which is around $46,000 in the current cycle.

It is worth noting that even if the price has exceeded these resistance levels, a consolidation or continuation of the uptrend must be considered a given Retracement could take place and BTC price gets stuck between these resistances.

BTC's attempt to consolidate above its macrodiagonal resistance usually results in significant gains once it is fully broken. Source: Rekt Capital on X

Given these historical trends, it is interesting to examine how Bitcoin could potentially reconcile these patterns. Rekt Capital offers insights into a possible path Bitcoin could take:

Bitcoin may experience limited upside during the pre-halving rally phase, which will lead to an uptrend at the end of February. This pattern has been observed over the past few months and throughout 2019.

Following this, Bitcoin could establish another one Range at higher price levels in March, which could potentially lead to altcoin rallies taking center stage. Finally, Bitcoin could experience a pullback a few weeks before the halving, leading to a pre-halving retracement.

This proposed path suggests that Bitcoin could surpass macro-diagonal resistance with an upside wick, but remain below it in view of the monthly month-end candle closes during this gradually concluding pre-halving phase.

Bitcoin Bull Run Indicator flashes buy signal

Crypto analyst Ali Martinez has added to the growing bullish sentiment surrounding Bitcoin by highlighting a key indicator that points to a possible bullish move.

After According to Martinez, the Supertrend indicator issued a buy signal on the BTC monthly chart. This tool is known for its precision in predicting bullish trends in the Bitcoin markets.

The indicator’s track record highlights the importance of this buy signal. Martinez points out that the supertrend has issued four buy signals since Bitcoin's launch and all four were confirmed, resulting in significant gains. These increases amount to an impressive 169,172%, 9,900%, 3,680% and 828%, respectively.

The flashing buy signal of BTC’s super trend. Source: Ali Martinez on X

However, amidst the optimistic outlook, Martinez also points out a possible strategy that could soon impact the price of Bitcoin.

After According to the Bitcoin liquidation heatmap, a scenario is emerging in which liquidity hunters could drive the price of Bitcoin to $45,810. The intent behind this move would be to trigger liquidations totaling a sizable $54.73 million.

It is important to understand that liquidity hunters aim to exploit price movements to trigger forced liquidations on overleveraged traders. Through strategic drive the price downThey can force these traders to sell their positions, leading to cascading liquidations that potentially reinforce downward price movements.

BTC price is trending upwards on the daily chart. Source: BTCUSDT on TradingView.com

Featured image from Shutterstock, chart from TradingView.com

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