Popular crypto analyst Rekt Capital has warned of a possible drop in Bitcoin before the halving.
In a post dated March 17, Rekt Capital signaled a “possible drop” for crypto investors. The analyst, who historically examines Bitcoin halving cycles, said that as of March 19, we officially enter into a “dangerous territory.”
Rekt Capital pointed out that in the past, Bitcoin’s price dropped in the 14 to 28 days before the halving, with 40% in 2016 and 20% in 2020.
Rekt Capital, noting that the Bitcoin halving is approximately 30 days away, cautioned investors to be careful, as last week’s drop was limited to 11%:
Bitcoin will officially enter the “Dangerous Territory” (orange) where historical Pre-Halving Pullbacks have occurred in 2 days. Historically, Bitcoin pulls a Pre-Halving Pullback 14-28 days before Halving. In 2020, this pullback was 20% drawdown. In 2016, it was 40% drawdown. Bitcoin’s halving is 30 days away, and it pulled back 11% this week.
According to NiceHash data, the Bitcoin halving is expected to take place on April 17.
