Bitcoin has now retreated 18% from its all-time high of $73,737 on March 14, tapping $60,000 during late trading on April 17.
Corrections are a healthy part of market cycles, however, and analysts agree that this one may not be over yet despite the halving being just a couple of days away.
On April 17, trader and analyst ‘Rekt Capital’ highlighted three market phases around the halving event, predicting a move into a re-accumulation phase.
Bitcoin has produced two 18% retraces prior to the halving in the span of just over a month, the analyst observed.
“This downside is typical just before the halving,” he said before comparing this cycle to previous ones. In 2016, the pre-halving retrace was 38% deep, and in 2020, it was 19% deep.
Now that the correction may be coming to a conclusion, markets will enter a re-accumulation phase after the halving, he predicted.
During this phase, Bitcoin will establish a range low and then move sideways, going into the halving and beyond. However, the re-accumulation phase has historically lasted for several months.
Bitcoin traded sideways for around five months following the 2016 and 2020 halving events, so if history rhymes, markets could remain range-bound at high $50k levels until around October this year.
On-chain analytics firm Santiment painted a bleaker picture, reporting that social sentient was sinking on April 18.
Bitcoin prices dumped to $60,000 during late trading on Wednesday but recovered to $62,000 during the Thursday morning Asian trading session.
Ethereum lost the $3,000 level again but also recovered slightly to reach $3,027 at the time of writing.
The altcoins were mostly in the red again, with larger losses for Dogecoin, Toncoin, and Polygon.
The post Bitcoin Poised to Enter Lenghty Re-Accumulation Phase as Pullback Hits 18% appeared first on CryptoPotato.
Corrections are a healthy part of market cycles, however, and analysts agree that this one may not be over yet despite the halving being just a couple of days away.
On April 17, trader and analyst ‘Rekt Capital’ highlighted three market phases around the halving event, predicting a move into a re-accumulation phase.
Bitcoin Re-Accumulation Phase
Bitcoin has produced two 18% retraces prior to the halving in the span of just over a month, the analyst observed.
“This downside is typical just before the halving,” he said before comparing this cycle to previous ones. In 2016, the pre-halving retrace was 38% deep, and in 2020, it was 19% deep.
Now that the correction may be coming to a conclusion, markets will enter a re-accumulation phase after the halving, he predicted.
During this phase, Bitcoin will establish a range low and then move sideways, going into the halving and beyond. However, the re-accumulation phase has historically lasted for several months.
Bitcoin traded sideways for around five months following the 2016 and 2020 halving events, so if history rhymes, markets could remain range-bound at high $50k levels until around October this year.
On-chain analytics firm Santiment painted a bleaker picture, reporting that social sentient was sinking on April 18.
Elsewhere on Crypto Markets
Bitcoin prices dumped to $60,000 during late trading on Wednesday but recovered to $62,000 during the Thursday morning Asian trading session.
Ethereum lost the $3,000 level again but also recovered slightly to reach $3,027 at the time of writing.
The altcoins were mostly in the red again, with larger losses for Dogecoin, Toncoin, and Polygon.
The post Bitcoin Poised to Enter Lenghty Re-Accumulation Phase as Pullback Hits 18% appeared first on CryptoPotato.
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