An analyst and trader is issuing a warning on Bitcoin (BTC) amid the flagship crypto asset’s double-digit pullback from an all-time high reached last month.
The analyst pseudonymously known as Rekt Capital tells his 71,300 YouTube subscribers that Bitcoin is currently experiencing a correction ahead of the halving scheduled to occur in a little over two weeks.
“So this pre-halving retrace began around 30 days before the halving and so we are in the thick of the danger zone…
Because we’re still in the danger zone anything can still go. This is still volatility that’s supposed to get us closer to establishing a re-accumulation range at these highs. So any volatility around this danger zone [between $73,800 and mid $60,000s] is still all within historical norms.”
The pseudonymous analyst says that it’s “very unlikely that we’re going to see a 40% pullback in this cycle” for Bitcoin, similar to the severe correction the flagship crypto asset underwent in the 2016 pre-halving period.
A 40% pullback from the all-time high would see Bitcoin’s price fall to a level around the mid-$40,000s. According to Rekt Capital, the lowest level Bitcoin could fall during this cycle is around $57,500.
“So 18% right now. If that’s not the bottom, we’d see a bottom around 20% or 22%. So it wouldn’t go much lower than this.”
Bitcoin is trading at $66,112 at time of writing, down by around 10% from the all-time high of about $73,800.
Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
Generated Image: DALLE3