Bitcoin’s price has seen limited action recently, consistently hovering around the $26,000 mark. Consequently, the cryptocurrency market space is rife with uncertainty. Significantly, amid this relative calm, Rekt Capital, a renowned Bitcoin analyst, recently provided a roadmap to guide investors’ decisions. He projects a strategy that may drive substantial profits through 2024 and beyond.
Rekt Capital began its analysis by diving deep into Bitcoin’s historical market trends. Through this study, he aimed to offer valuable insights for investors. One pivotal takeaway from his examination highlighted the importance of Bitcoin’s pre-halving periods in 2015, 2019, and, notably, the ongoing 2023 phase.
Comparing the 2023 market conditions with prior cycles, Rekt Capital believes purchasing Bitcoin at its current valuation is comparable to the $9,500 rate in 2019. Such an investment might come with heightened risks. History, he argues, indicates a potential dip, mirroring downturns experienced in both 2015 and 2019. However, he does admit to the prevailing ambiguity regarding Bitcoin’s future trajectory – either surging upward or facing further decline.
Moreover, he shed light on a surprising shift after the 2019 halving. Such a twist, he posits, could place Bitcoin in a more advantageous price bracket. Additionally, he emphasized the post-halving resistance point, a challenging hurdle in Bitcoin’s price journey. According to Rekt Capital, this resistance eventually gives way, initiating a phase recognized as the post-halving parabolic continuation. Such trends are evident when scrutinizing past data.
Furthermore, Rekt Capital explored the notion of a “macro higher low” using the 2019 landscape as a reference. Notably, the current market cycle hasn’t yet revisited this significant low, a point which 2019’s cycle touched three times.
For Bitcoin to emulate its 2019 pattern and attain this macro higher low, the cryptocurrency would need to undergo a 27% retracement. This would position its price at approximately $20,000. Significantly, Rekt Capital is optimistic about this potential downturn. He sees it as a prime “buying territory,” preparing investors for an ensuing relief rally and the anticipated post-halving parabolic growth.