Bitcoin (BTC) may be on the brink of entering a critical phase known as the “Danger Zone” before its halving, a period in which its price has historically experienced a decline, according to an analyst. On March 17, crypto analyst Rekt Capital stated that in just two days, Bitcoin will officially enter the “Danger Zone,” which has been associated with retracements in the lead-up to previous halvings. Rekt Capital explained that in the past, Bitcoin’s price has dropped between 14 to 28 days before its halving. For instance, during the 2016 halving, Bitcoin experienced a 40% decline, while in 2020, it fell by 20%. The analyst used a graph to illustrate the pre-halving price retracement zones, highlighted in red, and the post-halving price booms, highlighted in green.
Rekt Capital had previously predicted a “pre-halving rally” to occur approximately 60 days before the halving, followed by a “pre-halving retrace” one to three weeks before the event. This prediction turned out to be accurate as Bitcoin began to surge in mid-February and surprised analysts in March by surpassing its previous all-time high of $68,990. This marked the first time Bitcoin achieved such a milestone before a halving event. The next halving is expected to take place in less than 33 days, on April 20, according to CoinMarketCap. However, Bitcoin’s price has already declined by 8.5% from its March 14 all-time high of $73,835 to its current price of $67,537, as reported by Cointelegraph Markets Pro.
CEOs of major cryptocurrency platforms, Binance and Crypto.com, have expressed optimism about Bitcoin’s future. Binance CEO Richard Teng stated during an event in Bangkok on March 17 that he believes Bitcoin will continue to break records and surpass $80,000 by the end of the year. He pointed to institutional investors’ significant investments in Bitcoin through new United States exchange-traded funds (ETFs), which currently manage $57 billion, as evidence of continued demand. Teng acknowledged that price fluctuations will occur along the way but emphasized that Bitcoin is just getting started.
Similarly, Crypto.com co-founder and CEO Kris Marszalek commented that Bitcoin’s recent price drop was a healthy correction that removed excessive leverage from the market. He noted that his exchange is witnessing a resurgence in Bitcoin similar to late 2020 and early 2021 when the cryptocurrency rallied from under $20,000 to over $60,000 in just over three months. Marszalek expressed confidence in a steady increase in Bitcoin’s price, with less volatility compared to previous cycles. He highlighted that Bitcoin is an asset intended for long-term holding, not for short-term gains.
In related news, the magazine “The Bitcoin Man” recently featured an article speculating that China’s involvement in the cryptocurrency market would contribute to a bullish run for Bitcoin, potentially reaching $1 million by 2028.