Crypto Analyst Issues Bitcoin Warning, Says BTC Could Plunge Up to 40% Just Ahead of 2024 Halving

A widely followed crypto trader warns that Bitcoin (BTC) could see a dramatic correction ahead of the next halving in 2024.

Crypto analyst Rekt Capital tells his 370,300 followers on social media platform X that Bitcoin could repeat a 2016 price pattern and fall 40% after a pre-halving rally.

The next halving is expected in April 2024, when miners’ rewards will be halved. A 40 percent drop from Bitcoin’s current value equates to about $22,500, although BTC’s price could be significantly higher by April next year.

“Bitcoin could potentially see a halving event decline of up to 40%. We will focus specifically on this [2016] Retracement period before halving.

Here Bitcoin was consolidating to new yearly highs over an extended period of time in preparation for that light blue pre-halving rally, and after we hit those new yearly highs, Bitcoin actually declined by minus 40%.

A significant portion of that pullback came in the form of a downside wick, and if you think about that downside wick, it retested the top of that pre-accumulation area right here, but that happened just a couple of weeks before the halving event, a discount on Bitcoin.

40% isn’t always the case, but that’s probably the worst case scenario for Bitcoin. So, for example, if you see an area like this in this cycle, you can be assured that we will probably retest this area.”

Source: Rekt Capital/X

At the time of writing, Bitcoin is trading at $37,341.

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