Bitcoin is currently trading at $22,118, up 2% from its previous close, although it is still down 25% on the weekly charts. Bitcoin, according to crypto analyst Rekt Capital, may be entering a multi-month consolidation phase.
Furthermore, Rekt Capital has another intriguing idea for why the bear market may be months away. Rekt Capital expects the bottom in Q4 2022, based on the link between Bitcoin and the next halving cycle.
Bitcoin transactions are being made in waves of realized losses, which is not surprising. And this week has witnessed the highest number of realized losses since the data began in 2009. High capitulation spikes can and will foreshadow bottoms in the future. This week has witnessed the highest number of realized losses, causing traders the most anguish.
BTC hit rock low 547 days before the Halving in 2015. $BTC hit rock bottom 517 days before the halving in 2018. (discount March 2020 crash). If Bitcoin falls to a low of 517-547 days before the April 2024 halving… Then, in Q4 of this year, the bottom will be reached.
Furthermore, the circulation of Bitcoin tokens has reached its greatest level in 4.5 years. Traders are undoubtedly reacting to the significant price decreases this week. The 4.5-year high in Bitcoin’s daily token circulation illustrates how polarized we are. To begin the week, 497k unique $BTC were transferred, the most since December 6, 2017.