Bitcoin is on the cusp of entering a critical phase known as the “danger zone” just days before its next halving, an event that could see its value dip, as historically observed.
This period, highlighted by crypto analyst Rekt Capital in a recent X post, has in the past witnessed significant price retractions.
“In 2 days, Bitcoin will officially enter the ‘Danger Zone’ […] where historical pre-halving retraces have begun,” stated Rekt Capital.
“Historical data supports this claim, with Bitcoin experiencing a 40% fall in 2016 and a 20% drop in 2020 during the 14 to 28 days leading up to its halving events.
“Earlier in January, Rekt Capital had foreseen a rally and subsequent retrace surrounding the halving.
This prediction held true as Bitcoin outperformed expectations, surpassing its previous all-time high of $68,990 in March, ahead of a halving for the first time.
With the next halving anticipated on April 20, as per CoinMarketCap, Bitcoin’s value has slightly retreated from its March 14 peak, according to Cointelegraph Markets Pro.
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Amidst these fluctuations, Binance CEO Richard Teng remains optimistic.
Speaking at a Bangkok event, Teng projected Bitcoin could exceed $80,000 by year-end, fueled by institutional investments and the impact of new U.S. exchange-traded funds (ETFs), which currently manage $57 billion.
Teng emphasized the growth potential despite expected price volatility.
Echoing a sentiment of resilience, Crypto.com’s CEO Kris Marszalek viewed the recent price correction as beneficial, suggesting it curbed excess leverage.
He observed a momentum in Bitcoin’s trajectory similar to its late 2020 rally and anticipates a more gradual price increase.
Marszalek highlighted Bitcoin’s long-term value, suggesting it’s an asset meant for decades, not merely short-term speculation.
This outlook reflects a broader confidence in Bitcoin’s enduring appeal and its ability to navigate through its cyclical challenges, including the impending “danger zone.”
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