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Crypto Trader Says Bitcoin (BTC) Retracement Could Lead to “Parabolic Uptrend” – Here’s What He Means

A widely followed crypto analyst says a Bitcoin (BTC) pullback ahead of the halving could actually be a good thing.

Pseudonymous crypto trader Rekt Capital takes a deep dive into pre-halving BTC activity for his 372,100 followers on social media platform X.

The Bitcoin halving occurs approximately every four years. The pre-programmed event reduces the reward for Bitcoin miners by half, ultimately capping the total supply of Bitcoin at 21 million coins.

According to Rekt Capital, BTC has used halvings in the past to reach new all-time highs.

“The black trendline tends to act as resistance in the period leading up to the halving (orange circles).

But after halving it is broken and regained as new support (black circle)

After a successful retest, BTC later jumps to new all-time highs.”

Source: Rekt Capital/X

According to the trader, if the price of BTC declines before the halving, this will only lead to an even more explosive post-event phase, currently expected in April 2024.

“Any deeper retracement during the pre-halving period will enable the future parabolic uptrend in the post-halving period.”

Source: Rekt Capital/X

According to the analyst, BTC is still in the pre-halving phase.

“Bitcoin is still in the pre-halving phase

But after the halving, Bitcoin will continue to accumulate (red) for a few weeks before entering a parabolic uptrend (green).”

Source: Rekt Capital/X

At the time of writing, BTC is worth $37,594.

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Disclaimer: Opinions expressed on The Daily Hodl do not constitute investment advice. Investors should conduct their due diligence before making any risky investments in Bitcoin, cryptocurrencies or digital assets. Please note that your transfers and transactions are at your own risk and any losses you incur are your responsibility. The Daily Hodl does not recommend the purchase or sale of cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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