An analyst who accurately predicted Bitcoin's price correction ahead of this year's halving is laying out the most bearish scenario he thinks could happen to BTC.
In a new YouTube video, anonymous analyst Rekt Capital shared with his 86,100 followers that Bitcoin typically follows a four-year cycle based on the halving event – when the reward for BTC miners is cut in half.
Rekt points out that in every four-year cycle, Bitcoin faces a “three-year resistance” level – a phenomenon that has been repeated since 2013.
According to him, Bitcoin broke through three-year resistance at $700 in 2017 and $13,856 in the 2021 cycle before peaking. In the current cycle, the three-year resistance is set at $46,000 and BTC has broken through this level.
Source: RektCapital/YouTube
However, the veteran trader warned that Bitcoin could revisit this level to retest its role as a support level before continuing its further upward momentum.
“If we look closely at how this transition plays out, the fourth candle typically sets up a retest of three-year resistance and turns it into new support to push the price to new highs…
Focusing on the fourth candle and the halving year candle, there is always the possibility of a retest of this three-year resistance level, turning from resistance to new support… It seems like there is potential for a retest of this level as support. This means we may need to drop to $46,000 to do this retest, which would mean a 19% drop for BTC this month.”
While the analyst believes that the possibility of Bitcoin dropping to $46,000 this month is possible, he also stressed that this is a low probability as this is a halving year and not a bear market.
At press time, Bitcoin is trading at $54,435, up slightly on the day.
Source: https://tapchibitcoin.io/famous-trader-reveals-the-best-selling-stimulus-for-bitcoin.html
