Decoding The Possibility of Bitcoin (BTC) Price Dropping Below $20K in Q4-2023
Cryptocurrency analyst Rekt Capital has noticed a repeating pattern in Bitcoin’s price movements, particularly in the pre-halving years. This pattern resembles what was observed in 2019, a pre-halving year. The current market conditions show similarities to this previous cycle, suggesting that history may be repeating itself.
One notable aspect of the current trend is the development of a bearish fractal. This fractal mirrors the bearish phase observed during the 2021 bull market. It involves a double top formation, where prices rise briefly before forming a lower high and potentially heading lower.
What might we expect about price movements if this bearish fractal plays out? He suggests that if Bitcoin fails to break above current resistance levels, we could see a retracement towards the $25,000 to $26,000 range. This level could then become resistance, leading to a downward trend.
While the short-term outlook may appear uncertain, it’s crucial to remember the potential opportunities presented by Bitcoin’s halving events. Historically, Bitcoin has shown significant price appreciation in the months following a halving. The key is to position oneself strategically to benefit from these post-halving gains.
He also said that one can consider the possibility of a retracement in the pre-halving period. This retracement could create an attractive buying opportunity for those looking to accumulate more Bitcoin. While a significant crash like March 2020 is unlikely, a more moderate retracement to around $20,000 seems plausible.
Bitcoin’s price tends to appreciate for months after a halving event. The uptrend following a halving has lasted between 518 and 550 days. This extended bullish phase can lead to new all-time highs.
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